Financial Advice for Investments

Investments play a crucial role in reaching long-term financial goals. This guide looks at the fundamentals of investing and how Holborn Assets' specialists offer financial advice for investments.

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Investing allows you to plan for the future and achieve your long-term financial goals.

When we invest, we put our money into an asset we think will increase in value over time. However, the fear of losing money and complex financial jargon can be enough to put people off.

Our financial advice for investments guide provides an overview of what you need to know about investments and the benefits of investment advice from a financial expert.

The difference between saving and investing

In general, you have two options for your money. You can either save it or invest it. But what is the difference between the two?

Savings

Saving means putting money aside, usually in cash products such as a savings account with a bank.

Savings are better suited for short-term goals or when you need quick access to your money. For example, a deposit on a house or an emergency fund would be better suited to a savings account.

Investing

Investing is the process of buying financial products that may increase in value over a period of time.

Investment products are usually those bought on the stock market. These may include shares in a company or investment funds.

Investments are better suited to long-term goals and have a far greater potential for income growth than savings. However, the value of investments can go down as well as up.

Here is something to consider when deciding what is best for your money – save for the short-term, and invest for the long-term.

If you need access to your money within a 5-year period, savings options may be a better fit. But, investing may be the better option if you are thinking about the future and long-term growth.

Learn more: Financial Planning and Wealth Management

Five golden rules for investing

Everyone has different financial goals and objectives. Therefore, any financial advice for investing needs to be tailored to your needs.

Regardless, there are some golden rules that investors should bear in mind.

With reward comes risk

Everyone wants the best possible return on their investment. But remember the general rule of thumb; the higher the return, the higher the risk.

There is a degree of investment risk with any asset. However, some asset classes have higher risk profiles. Equities and bonds are good examples of two assets on opposite ends of the spectrum.

Equities, or shares, have the best returns but are highly volatile. Meanwhile, bonds produce lower returns but are considered lower risk.

The investment choices you make need to strike a balance between achieving your goals and aligning with your risk tolerance.

Learn more: How to Manage Risk with Wealth Management

Don’t put all your eggs in one basket

It’s usually not a good idea to go all in on an investment. Instead, it’s to spread your chips more evenly.

This is a strategy called diversifying, and it’s one that most investment professionals use. And while you can’t eliminate risk, a diversified portfolio can help lower the overall risk of your investments.

Building a diversified portfolio means investing in different companies, regions or sectors. Mutual funds and Exchange Traded Funds (ETFs) make this easy.

A fund is a ready-made basket of investments. So, you can gain exposure to lots of different assets at once.

Continue to optimise

As we go through life, our goals and circumstances change. Assessing and optimising your portfolio is vital to ensure you’re on track to meet your goals.

Take your retirement planning strategy as an example. As you get closer to retiring, you may want to rethink your asset allocation and take a lower-risk approach.

Think long-term

Investments are a long-term strategy to build wealth. It’s important to keep that in mind.

It’s usually recommended that you remain invested for at least five years. However, 10 years or more gives your money the best chance to grow and achieve longer-term goals.

Learn more What’s the difference between wealth management and asset management?

Stay calm

This ties in with the previous point, and to become a successful investor, it’s something to always keep in mind.

At some point, the value of an investment will likely drop. Most even consider this a normal part of the investment process.

While it can be easy to panic and jump ship, it’s often best to remain invested and weather the storm. Remember, investments are a long-term strategy, so you will likely make up for any short-term losses.

The benefits of professional investment advice

For many, investing will be a key component of their broader financial planning strategy. But with so many options and types of investment to choose from, how do you know which is best for you?

Financial advice from an investment professional provides several benefits, including:

  • Build an investment plan that is tailored to you and your goals
  • Ensure your portfolio is balanced and diversified
  • Make the process simple and easy to understand
  • Help you feel supported
  • Save you time
Financial Advice for Investments

Financial advice for investments with Holborn Assets

Professional investment advice goes a long way. Whether you are looking to get started or expand your investment portfolio, we can help.

Holborn Assets is a leading global financial services company. We specialise in the expat market, providing bespoke financial solutions and wealth management services.

Our team of qualified, experienced financial investment advisers can help you make more informed investment decisions and ensure you put your money in the right place at the right time.

Start building towards a brighter financial future today. Contact us, and speak with our team to find out how we can help you.

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