Making Solid Financial Resolutions: Grow your money and live the life you want.

The new year is the perfect time to overhaul your life for the better, and one excellent place to start is by making solid financial resolutions that can help get you closer to your money goals, whether it’s increasing your retirement savings or setting enough money aside for a down payment on a house.

Investing is not just about what you know but also who you are. The key to successful investing isn’t predicting the future – it’s learning from the past and understanding the present. Investing offers potential to grow our money, reach our goals and live the life we want. Regardless of the market conditions at the moment, the keys to successful investing are always the same.

CASH SAVINGS VUNERABLE TO EROSION BY INFLATION

Investors often think of cash as a safe haven in volatile times, or even as a source of income. But even though we have seen a recent small rise in interest rates, we’re still experiencing
a period of ultra-low interest rates which have depressed the return available on cash to near zero, leaving cash savings vulnerable to erosion by inflation over time. With interest rates expected to remain low, investors should be sure an allocation to cash does not undermine their long-term investment objectives.

Cash left on the side-lines earns very little over the long run. Investors who have deposited their cash in the bank may have missed out on the impressive performance that would have come with staying invested over the long
term.

MAKING AN ENORMOUS DIFFERENCE TO YOUR EVENTUAL RETURNS

Compound interest has been called the eighth wonder of the world. Its power is so great that even missing out on a few years of saving and growth can make an enormous difference to your eventual returns.

You can make even better use of the effects
of compounding if you reinvest the income from your investments to enhance your portfolio value further. The difference between reinvesting
– and not reinvesting – the income from your investments over the long term can be significant.

BE PREPARED UPFRONT FOR THE UPS AND DOWNS OF INVESTING

Every year has its potential roller coaster ups and downs. Volatility in financial markets is normal, and investors should be prepared upfront for the ups and downs
of investing rather than having a knee-jerk reaction when the going gets tough. The lesson is, don’t panic: more often than not, a stock market pullback is an opportunity, not a reason to sell.

INVESTORS SHOULD LOOK TO KEEP A LONG-TERM PERSPECTIVE

Market timing can be a dangerous habit. Pullbacks are hard to predict, and strong returns often follow the worst returns. But often, investors think they can outsmart the market, which they may later regret. As the saying goes, ‘Good things come to those who wait.’ While markets can always have a bad day, week, month or even a bad year, history suggests investors are much less likely to suffer losses over longer periods. Investors should look to keep a long-term perspective.

REDUCING RISKS WHILE POTENTIALLY IMPROVING RETURNS

The last decade has been a volatile and tumultuous ride for investors, with natural disasters, geopolitical conflicts and a major financial crisis. Among the most important tools available to investors is diversification. Diversification allows an investor to reduce investment risks while potentially improving investment returns.

A diversified portfolio is typically split across a range of different asset classes, with exposure to different companies, industries and types
of market from different regions around the world. In a diversified portfolio, the assets don’t correlate with each other. When one rises, the other falls. It lowers overall risk because, no matter what the economy does, some asset classes will benefit.

Looking to invest for income, growth or both?

Your money lets you do the things you enjoy and take care of the people you love. Besides saving, investing gives potential to grow your money and provide finances well into the future. Whether you are looking to invest for income, growth or both, we can provide the quality advice, comprehensive investment solutions and ongoing service to help you achieve your financial goals. You can call us to arrange an appointment or ask a question.

Who are Vizion Wealth?

vw-portrait-blue-dark-grey-light-grey-ifa-and-wealth-final_edited-2 Our approach to financial planning is simple, our clients are our number one priority and we ensure all our advice, strategies and services are tailored to the specific individual to best meet their longer term financial goals and aspirations. We understand that everyone is unique. We understand that wealth means different things to different people and each client will require a different strategy to build wealth, use and enjoy it during their lifetimes and to protect it for family and loved ones in the future.

All of us at Vizion Wealth are committed to our client’s financial success and would like to have an opportunity to review your individual wealth goals. To find out more, get in touch with us – we very much look forward to hearing from you.

DISCLAIMER

INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM, TAXATION ARE SUBJECT TO CHANGE.

THE VALUE OF INVESTMENTS AND INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.

PAST PERFORMANCE IS NOT A RELIABLE INDICATOR OF FUTURE PERFORMANCE.

Posted by Andrew Flowers

Andrew is the managing partner of Vizion Wealth and has been involved in the offshore and onshore financial services industry for over 18 years. Andrew was the driving force behind Vizion Wealth after years of experience in a number of advisory roles within high profile wealth management, private banking and independent financial advisory firms in the UK.

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