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Investing is a decision that is becoming increasingly popular, especially for those who are looking for potentially bigger returns. ISA investment is perhaps one of the most familiar options, with stocks and shares ISAs enabling people to potentially build up a significant amount through returns. As many Britons plan towards the future, amassing a certain amount of money could provide valuable protections later down the line.
Saving regularly and investing those savings rather than leaving them to sit in a bank account, therefore, is often considered as the key to success.
But when embarking upon an investment journey, what are the important points to note?
Express.co.uk spoke to James Norton, Senior Investment Planner at Vanguard, who provided further insight into how Britons can manage their investments.
Regardless of how people choose to invest, whether through an ISA or other means, Mr Norton ultimately pointed towards four key principles that anyone embarking upon such a journey should bear in mind.
He said: “Successful investing can be broken down into four basic principles: goals, balance, cost and discipline.
“If you think of goals, you need to look at what you are trying to achieve, both in the long and the short term.
“With long-term goals, for example, pension saving, you may be able to take more risk. But with short-term goals you may want to adopt a different strategy entirely.
“Unless you have clear goals in mind to begin with, then you can’t really set yourself up for a successful investing experience.”
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Balance, Mr Norton said, was about structuring an investment portfolio around the goals individuals have in mind.
People should focus on how much they want to invest, where, and of course the risk they ultimately want to take, balancing these components out accordingly.
He continued: “After that, you should keep your costs as low as possible because every pound you pay in costs is a pound less than you will have in your back pocket.
“Costs can build up when you least expect it, and their impact is absolutely colossal on investment.
“The difference over a person’s lifetime if not bearing costs in mind could end up being tens of thousands of pounds.
“Reducing costs is, therefore, key to ensuring successful investment, and that you can achieve those goals you had in mind.”
Finally, then, when investing, Britons should consider discipline.
This involves having an understanding of the investments which have been made, and not taking excessive actions.
Mr Norton concluded: “Disciplines comes back to the idea of simplicity.
“Once you know what your goals are, and you’ve set them up to cost you as little as possible, leave them alone.
“You don’t want to mess around with investments too much as you could end up doing more harm than good.
“You don’t need to be watching the business news, or looking at buying new stocks – instead, you should just stay the course.
“We really advocate for keeping things simple, as it means better management and potentially more investing success.”
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