Investments, shares and private equities are not usually top of the curriculum in your average high school and so the investment world can appear unnatural and overwhelming. With limited knowledge of the stock market, most people are apprehensive about taking a risk with their hard-earned cash.
Just how risky is it? We’ve put together some of the frequently asked questions for people starting out in the stock market:
1. Where do I start?
Spend time researching and learn about investing. There is a wealth of information online, become familiar with the basics before you make a financial commitment.
2. How much shall I invest?
Set yourself an investment goal and be realistic about your personal financial situation.
3. Who will manage my investment portfolio?
You may wish to go DIY and set up an account over the internet and online tools are available to assist you in discovering your tolerance for risk. You will be required to answer a few risk-related questions and your account can be set up in minutes. This type of system is designed to assist you in choosing where to invest your money.
A face to face interaction may be preferable so make an appointment with a financial advisor and discuss your requirements in person.
4. How can I keep track of my investments?
Wherever you choose to manage your investment portfolio, find a provider who offers financial advisor software. This way, financial records are updated automatically so the value of your investment is available to you at the touch of a button, and in real time.
5. Which is the best financial advisor software?
Consider an advisor who has invested in advisor management software such as www.intelliflo.com.
6. How much does financial advice cost?
Consider your costs. Think about commissions and make sure you’re aware of investments that pay advisors high commissions. Make sure your chosen financial advisor is fully accredited. You can find out more information about financial services requirements here: https://www.bbc.co.uk/news/business-12238829.
7. When should I invest and how quickly will I see a return?
There is no right time to invest. There are no tried and tested get rich quick methods. Develop patience and be ready to be in it for the long haul. As Warren Buffett advised, don’t consider owning a stock for 10 minutes if you wouldn’t want to own it for 10 years.