Money FM 89.3 Show
Asked on 30 Oct 2019
How should we prioritise them?
For me personally, and the advice I tell clients before you start investment to make sure to have at least 6 months of expenses in your bank account. Otherwise, work towards saving this first
Next would be to ask yourself, why are you investing.
Do you want to use it in the next few years for a car?
Or just to invest for the future, retirement etc
With that set, you then determine your risk profile. Do you want to beat inflation?
Can you stomach when the market is down?
Do you want to do the investment yourself?
Do the stocks analysis etc yourself?
Do you have sufficient time n commitment to diligently do your homework?
Monthly investment or a 1-time lump sum investment?
The charges you will incur if you trade/ invest per annum
Types of stocks/ bonds/ FD/ funds that you are comfortable with
The country/ region or industry of the stocks/ funds
These are some of the questions I assist my clients with. And to know how much is ideal, I advise clients 20% of their annual income
Hope this helps! Cheers!
When thinking of investing I personally am convinced that short term investing cannot be longterm successful. Time is in our side...
more on my thinking here: