6-Things-you-need-to-know - 6 things you need to know To...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
6 things you need to know. .. to get the most out of your investments - 10/10 6 things you need to know To get the most out of your investments This information sheet was written to help you develop an awareness of financial (and other) matters to consider when investing your money. I have recently come into money are there any decisions I need to make straight away? It is usually not necessary to make any decisions immediately. So, allow yourself time to adjust to your new situation and assess your options. You may find it beneficial to decide how much you will need to live on for the next 6 to 12 months and keep that money separate. You can put your money in a temporary and safe account a term deposit or cash management account will provide a safe and relatively liquid place for your money. You may need to get tax advice so that you can determine if there are any immediate actions you must take because of tax repercussions. 1. How do I preserve and grow my capital? Arguably the most important goal of investing is to maintain the real spending power of your savings. That is best achieved through risk management, not chasing returns. Risk cannot be entirely avoided or outsmarted through cleverly timed purchases and sales. But investments can be shaped to minimise risk and maximise potential returns. While it is natural to be concerned about the security of investments, a smart investor understands the need to undertake a certain amount of risk. Safe low-risk cash investments, like cash management trusts, for example.are excellent choices for preserving the nominal value of assets and ensuring a very high level of liquidity, if that is a requirement. However, over the longterm they generally cannot provide the capital appreciation needed to meet long-term investment goals. The best way of both protecting capital
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/20/2011 for the course ECON 5128 taught by Professor Ram during the Spring '11 term at Cambridge College.

Page1 / 2

6-Things-you-need-to-know - 6 things you need to know To...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online