Investment Objectives
You should consider clearly your objectives before investing.
Examples are:
• Bearing in mind the relationship between volatility and return, if when you valued your investment in 1 year, and the underlying value of your funds was down, what % would you be prepared to see your funds fall by, before you became alarmed? 5%, 15%, 25%, 40%? The truth is you have to be comfortable with fluctuations in your money if you wish to invest to beat inflation.
• What are you seeking from your investment, income, growth, or both?
• What are your expectations of investment returns, as a percentage per annum?
• If you require income now, what percentage return is needed on the investment you are making?
• If your aim is income at a later date, in today's terms how much and when is income required?
• How likely is it that you may need access to this capital, either in part or whole, during the next 5 years?
• Do you require the income or growth guaranteed?
• When your investment term is complete, what do you intend to do with the money?
• What is your view of charges versus return i.e. would the lowest charging company be the best for you, or do you seek a company that has been obtaining better consistent returns (not that it mightn't be the same company)?
• Do you want the flexibility to move in a charge-efficient manner from fund to fund?
• Are there any market sectors you would like to invest into or avoid?
• Is simplified administration important to you?
• Is tax efficiency important?
• Have you used your ISA allowance this tax year?
• Is your tax position likely to change for any reason in the foreseeable future, or when you retire, if you have not yet done so?
• What are your immediate cash requirements?
• What are your future cash requirements?
• What is your current tax position?
• What will your future tax position be?
• Do you have any other requirements?
• Are there any sectors you would like to avoid?
• What is your attitude to risk?
• What figure are you seeking to invest?
• Where is the capital coming from that you wish to invest?
• In realising this sum to invest will there be any tax liability/loss of possible windfalls?
• What % of your total liquid capital (excluding emergency funds) does this investment represent?
• How many years do you expect the capital to be invested for?
After considering these - the section on 'Why Invest', and the 'Investment Risk' section you will be better placed to make an informed decision on your investment.
Find out why many people switch their Investment adviser to Worldwide Financial Planning by calling 0845 230 9876 or complete the enquiry form in confidence.
Worldwide Financial Planning – Investment Adviser of the Year, Ethical investment Adviser of the Year
Examples are:
• Bearing in mind the relationship between volatility and return, if when you valued your investment in 1 year, and the underlying value of your funds was down, what % would you be prepared to see your funds fall by, before you became alarmed? 5%, 15%, 25%, 40%? The truth is you have to be comfortable with fluctuations in your money if you wish to invest to beat inflation.
• What are you seeking from your investment, income, growth, or both?
• What are your expectations of investment returns, as a percentage per annum?
• If you require income now, what percentage return is needed on the investment you are making?
• If your aim is income at a later date, in today's terms how much and when is income required?
• How likely is it that you may need access to this capital, either in part or whole, during the next 5 years?
• Do you require the income or growth guaranteed?
• When your investment term is complete, what do you intend to do with the money?
• What is your view of charges versus return i.e. would the lowest charging company be the best for you, or do you seek a company that has been obtaining better consistent returns (not that it mightn't be the same company)?
• Do you want the flexibility to move in a charge-efficient manner from fund to fund?
• Are there any market sectors you would like to invest into or avoid?
• Is simplified administration important to you?
• Is tax efficiency important?
• Have you used your ISA allowance this tax year?
• Is your tax position likely to change for any reason in the foreseeable future, or when you retire, if you have not yet done so?
• What are your immediate cash requirements?
• What are your future cash requirements?
• What is your current tax position?
• What will your future tax position be?
• Do you have any other requirements?
• Are there any sectors you would like to avoid?
• What is your attitude to risk?
• What figure are you seeking to invest?
• Where is the capital coming from that you wish to invest?
• In realising this sum to invest will there be any tax liability/loss of possible windfalls?
• What % of your total liquid capital (excluding emergency funds) does this investment represent?
• How many years do you expect the capital to be invested for?
After considering these - the section on 'Why Invest', and the 'Investment Risk' section you will be better placed to make an informed decision on your investment.
Find out why many people switch their Investment adviser to Worldwide Financial Planning by calling 0845 230 9876 or complete the enquiry form in confidence.
Worldwide Financial Planning – Investment Adviser of the Year, Ethical investment Adviser of the Year
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