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The Paramus Post - Greater Paramus News and Lifestyle Webzine
Thursday, August 25 2016 @ 07:31 AM EDT

Personal Investments: What Should I Consider?


If you’re thinking about making a personal investment, it’s important to think about your long-term financial goals and whether or not you’re in a position to invest. The volatile nature of the market means that individuals can pay dearly for making snap investment decisions without considering the consequences. This is why it’s especially important to consult with a firm that can offer expert advice on fluctuations in the current market, like Sanlam Private Investments. Even if you consider yourself to be financially competent, it’s always best to seek a specialist opinion.

Your Financial Situation and Financial Appetites

You should take stock of your current financial situation before making any kind of personal investment decision. If you owe money on high-interest sources like credit cards, it’s advised that you pay off these debts before getting involved in Think about your goals and how much risk you are willing to take. With the help of a financial professional, you can decide how much control you want to have over your investments. All investments are prone to some degree of risk, so it’s essential that you understand the risk that accompanies each investment decision. If you’re comfortable with a larger amount of risk, you have a better chance of making a greater investment return. Stocks and bonds are generally considered to have the greatest risk attached to them, and are more appropriate for long-term financial goals.

A Mixture of Investments

To protect yourself against significant losses, it’s a good idea to have a mixture of asset categories within your investment portfolio. Generally speaking, stocks, bonds and cash don’t move up or down at the same time, so if one of your assets is giving poor returns, you’ll need another to do well and counterbalance this loss. It’s important to keep your financial goal in mind at all times, and use a mixture of investments so that a certain degree of risk is included. Too little risk, and it’s unlikely that you will meet your monetary target. It’s also advised that you don’t place all of your investment eggs in a single basket, for example investing heavily in your employer’s company may cost you dearly if the business goes bankrupt.

The Importance of an Emergency Fund

It’s impossible to completely prepare for all eventualities, and this is why it’s so important to create an emergency fund. This should cover you in the event of sudden unemployment or world events outside of your control that have negatively impacted on your personal investments, like the current crisis in the Ukraine. Some investors like to put six months of their salary aside to give them added security. It’s wise to be prepared for an emergency, particularly if you’re investing in volatile markets around the world. If you’re unsure about the riskiest markets, it’s wise to seek advice from a professional investment service.


by Angela Sanders

I am a Financial Writer of some financial sites & blogs. I also do free Guest Posting for Financial Sites.

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