How an IFA can help you navigate the world of investments and make the best decisions for you

November 17, 2023

We all have visions of our future. Yours may be focused on the next few years – buying a home, establishing a family – or you may be looking towards securing a comfortable future in retirement, or helping the next generation by passing on wealth.

Regardless of your stage in life, ensuring that your money works its hardest to help you is an important part of achieving your goals. The world of finance can be daunting, with so many possible options. There are no right or wrong answers; making the most suitable choices for you and your objectives is what matters most.

Investing is one important option to consider if you want to grow your money over time – if you rely purely on saving, the spending power of your cash tends to go backwards because returns on it aren’t enough to keep pace with inflation.

However, it’s a complex area, where mistakes can add up to potentially diminishing the value of your portfolio over time.

That’s not to say that you can’t dive into the world of investment yourself, but there are pitfalls, which an experienced IFA can help you to navigate.

We’ve gathered together our list of the most common things that investors need to consider:

• Emergency fund: Before investing, prioritise paying off debts and setting aside an emergency fund to cover unexpected expenses without having to resort to loans or selling devalued investments. The size of your emergency fund will depend on your personal circumstances, but six months’ expenses is a common choice.
• Tax matters: By using tax-efficient wrappers like Individual Savings Accounts (ISAs) or pensions you can minimise your tax liabilities and use what you save in tax to boost your finances.
• Spread risk: Spread your investments across different asset classes, sectors and regions to minimise losses when one type of investment underperforms.
• Take a long-term view: Invest with a long-term perspective (most advisers will suggest a minimum of five years, but depending on your goals you might need to look further ahead), to allow your money time to recover from market downturns and grow in value.
• Don’t panic: Avoid panic-selling during market drops, as this could crystallise losses and cause you to miss out on potential gains.
• But recognise when a loss is a loss: Don’t hold on to underperforming stocks in hopes of recovery; reinvest in better prospects for long-term gains.
• Stay focused: Don’t copy others’ investment choices mindlessly, as they may not suit your circumstances.
• Learn from results: Reflecting on past investment decisions, both successful and unsuccessful, can help you to avoid repeating mistakes in the future.

Our final piece of advice is to seek expert advice.

Investing is complex and requires time, research and knowledge. A qualified professional like an IFA will help you to create a financial plan which considers all the options.

At Talis IFA, we use our expertise to  guide our clients through a complex range of investment options. We look at the financial world together, identifying the most suitable options and opportunities for you – based on a deep understanding of your situation, your goals and your attitude towards investment risk. We’ll explain everything in plain English and ensure you have the information you need to guide you to a decision.

Investments, of course, are only one option. There are other ways to grow your money, and there are no right/wrong choices, only the decision that feels best for you.

We take a long-term view – we never expose you to risky ‘get-rich-quick’ schemes, preferring to guide you towards a strategy which gives you the satisfaction and confidence of watching your money grow over time, and achieve your goals at whatever stage you are in your life.

A comprehensive review of your current financial position will help you to plan for the future and ensure that your investments keep pace with changes and continue to offer you financial freedom.

Find a Talis IFA here.

 

This article does not constitute tax or legal advice and should not be relied upon as such.

The value of your investments can go down as well as up and you may get back less than you invested.

The tax treatment is dependent on individual circumstances and may be subject to change in future. For guidance, seek professional advice.