Making New Year’s resolutions for your investments is “one of the best gifts you can give yourself and your family.” (1)
Don’t worry, there’s no talk of a total revamp here. In the blur of excitement, it’s easy to adopt a ‘New Year, New Me’ philosophy.
But this post discusses potential ways to realign your investment compass. To revisit the drawing board and find out how you can adapt with a changing market.
- Take the Time to Reflect
It sounds simple, but it’s underrated. Before taking action, you might want to reassess the situation. Go back to the basics.
Michael Young, CEO of Mediatrix suggests reminding yourself of the following:
- Risk tolerance
- Timing
- Need for short-term income
- Long-term goals
- How you feel about your finances now (1)
Life is constantly changing. It’s likely that the above categories vary from time to time, too. So, you might want to start by investing in some reflection. Ask yourself whether your current investments have the potential to meet your goals.
- Make an Informed Decision
After you’ve reflected upon your own situation, consider if you need to make any changes.
According to the Telegraph, if you’re approaching your target, you might want to consider lowering your risk to avoid loss. Or, if you have time on your hands, you may wish to do the opposite. (2)
- Stay Tuned
Technology has changed the face of finance. A 21st century investor has a greater choice of options. You could use the New Year to investigate new ways to invest.
There’s peer-to-peer lending, crowdfunding and even robo-investing. “Fintech has become synonymous with a movement for change, a mindset geared towards disruption.” (3) Here at Property Moose, for example, you just need £10 to become a landlord. With Nutmeg, algorithms can put an immediate investment plan in place for you based on your risk tolerance. Zopa has made loans simple by matching borrowers and lenders directly.
Indeed, “financial technology companies are challenging the big banks in all sorts of areas.” (4)
Investing is no longer reserved for the wealthy. Technology has broken down the barriers that made it exclusive. So that means…
- You Can Start Now
If you haven’t already, of course. It’s never too late to start. If, at the age of 21, you started investing £100 pounds a month, you could have £81,479 by the time you turned 46. Find out how in our recent blog post.
- All That Glitters is Not Gold
Due diligence is imperative. It’s important that you do your homework when weighing up a new investment opportunity! Some platforms can make things simpler to digest, however. At Property Moose, for example, we provide simple predictions that are easy to understand. Hopefully, this can allow investors to make informed decisions about their investment choices.
Written by Jenna Kamal
Sources
- https://www.equities.com/news/new-year-s-resolutions-for-your-portfolio
- http://www.telegraph.co.uk/finance/personalfinance/investing/12087221/My-five-investment-resolutions-for-2016.html
- https://www.starlingbank.com/wp-content/uploads/2016/09/starling_fin_tech_report_final.pdf
- http://www.institutionalinvestor.com/blogarticle/3563039/fintech-if-you-cant-beat-them-join-them/banking-and-capital-markets-trading-and-technology.html?ArticleID=3563039#.WFFzvqKLS8U
Disclaimer and Legal
Property Moose does not provide any advice in relation to investments and you must rely on your own due diligence before investing. Please remember that property prices can go down as well as up and that all figures, rates and yields are projections only and should not be relied on. If in doubt, please seek the advice of a financial adviser. Your capital is at risk if you invest. This post has been approved as a financial promotion by Resolution Compliance Limited.
Property Moose is a trading name of Crowd Fin Limited which is an Appointed Representative of Resolution Compliance Limited which is authorised and regulated by the Financial Conduct Authority (no: 574048).
