Wealth Building - The Ultimate Checklist - Part 2
Master Your Money
Optimise Your Investments.
Tip 1: Time Horizon and Liquidity When will you be spending this money?
Tip 2: Net Worth What is the estimated value of your assets minus your liabilities? The higher overall net worth,the more capcity you have to stand market volatility
Tip 3: Investment knowledgeThe more knowledge you have about investing, the higher your risk capcity. Market timing is an impossible strategy.
Long-Term InvestorsMost look to the global financial markets as their primary investment avenue and the good news is that the capital markets have rewarded long-term investors. The markets represent capitalism in the global economy and historically, free markets have provided a long-term return that has offset inflation.
Diversification Helps Take the Guesswork out of InvestingYou never know which markets will outperform from year to year. By holding a globally diversified portfolio, investors are positioned to capture returns wherever they occur.
What Market?Most look to the global financial markets as their primary investment avenue and the good news is that the capital markets have rewarded long-term investors. The markets represent capitalism in the global economy and historically, free markets have provided a long-term return that has offset inflation.
Markets Have Rewarded Long-Term Investors
This data illustrates the beneficial role of stock market-related investments in creating real wealth over time. Investment market returns have far exceeded inflation and have significantly outperformed bonds. One thing to note is that not all stocks, or bonds, are the same.
Risk, Uncertainty, and Volatility.....Remember that there’s risk, uncertainty, and volatility in the investment markets. Shares and bonds are two of the main investment options available in the capital markets and are the primary methods through which public companies access capital from investors.
Bonds are considered a loan to a company, and shares are regarded as a purchase of ownership in a company. Shares and bonds will provide a different expected return, given their different characteristics, and each plays a unique role in the portfolio.
Markets have rewarded patience
Uncertainty about the future is constantWe help you create an investment plan based on market principles, informed by financial science, and tailored to a your specific financial requirements. Along the way, we can help you focus on actions that add investment value, such as managing expenses and portfolio turnover while maintaining broad diversification, liquidity and access. Equally important, we try provide knowledge and encouragement to help you stay disciplined through various market conditions.
Markets Have Rewarded Discipline
Data presented in the Growth of €1 chart is hypothetical and assumes reinvestment of income and no transaction costs or taxes. The chart is for illustrative purposes only and is not indicative of any investment.
This is part two of our three part series on Wealth Building. Be sure to sign up to our newsletter for regular insights and tips. We cover investments, pensions, pension planning and more.
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