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Passive investment Checkpoints

At Enable of Bishops Stortford our IFA’s will always start by talking to you about your financial goals. Having a target is a powerful motivator. Knowing how big and far away the target is enables you to work out three essential parts of your plan:  How long you will need to invest, how much money you  need to put in and how much risk you’d expect to take for that level of return. To reduce the risk, you can increase your timescale or contributions.

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So importantly you also need to assess how much risk can you handle.  Going for higher potential rewards will obviously mean taking more risk but if you spend sleepless nights worrying about your portfolio what is the point?  The more cautious you are, the more conservative your investment mix should be. One of the best ways to determine what your risk taking capacity is can be by taking a psychometric test something many IFA’s can arrange or conduct themselves.  The companion to risk is of course long term thinking.

One of the key things to do is harness the power of compound interest as early as possible because it has an astounding ability to boost your returns. It’s the effect of interest earning interest. The trick is to magnify the compounding effect by retaining every scrap of return in your portfolio: Don’t withdraw income until you hit your target. Reinvest all your dividends and other interest payments. Start investing NOW. The longer you invest the more compounding helps. Enable’s Independent Financial Advisors can help you set up your portfolio. So why not pop into our office in Bishop’s Stortford for a chat or call us on 01279 755950.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 – Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.

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Call Enable FLP today on 01279 755 950 to book your FREE consultancy and to find out how we can make your money work better for you. Alternatively, send us a message by clicking here and one of our financial experts will call you back