RPA official wealth management partner Sanlam UK take us through their top 10 tips for maintaining a strong and stable financial portfolio.
Never – ever - have all your eggs in one basket - An old adage – but one worth keeping to. - No one investment can be all things to all people. - It is imperative, so as not to have all of your money in the wrong place at the wrong time.
By the time you spot a bandwagon, it’s usually too late to hop on it - Investing can be as much about timing as it is about the investment. - If something looks too good to be true, it probably is. - Be aware of the source of the recommendation and their reputation.
A long-term investment is often a short-term investment that went wrong! - Making a big gain on an investment in days or weeks will, in all probability, be littered with risks. Tread carefully. - Short-term investments that fail to deliver often end up being held for the long-term.
Never let the tax saving tail wag the investment dog - There are plenty of ways to reduce tax. But not all tax breaks come with the same degree of certainty. - ‘Aggressive tax planning’ is a phrase to watch out for. Use reputable and recognised vehicles such as ISA’s and pensions. - Using schemes that are against the spirit of the Revenue can lead to tax problems – ask some Premiership footballers.
Pensions are great, tax-efficient vehicles - Pension contributions are a good way of reducing tax.
Don’t overcook the property - Property can be a great investment whilst generating an income. - Property has appreciated significantly in the last 10 years. - Be aware interest rate rises as this can damage property prices.
Why ‘cash is king’ - Putting cash in a bank or building society will give relatively low returns. But your cash will be safe. - Aim to take advantage of accounts that give you the best return, in a tax-efficient fashion – shop around for the best rates.
Mortgages - With inflation and interest rates possibly rising, check your mortgage rate. - It might be a good time to look at fixed rates.
Get money fit - Search online for the best mortgage rates, credit cards, bank and building society rates. - Keep your money moving to get the best out of it – but avoid switching costs.
Trust your adviser and your instincts - Use a financial adviser you can trust and who is regulated. - A good adviser should be able to make you a good return on your investments over your career. - Advisers can help your financial development & meet your aims and ambitions. Sanlam have been successfully advising clients for nearly 100 years.
Please do not hesitate to contact Andrew Lewis at Sanlam UK on 07788 318274 or at Andrew.firstname.lastname@example.org for further help or guidance.