Keeping It Simple
How You Invest
Putting something away each month may not seem a very exciting way to invest. It is however a very effective means of investing and the best way to build wealth over the long-term.
Providing for our retirements or children’s education costs in this way is extremely common. The reason for this is that if we do it properly and maintain contributions, then it really works.
There are a number of reasons why it can be so effective. One of the main ones is that you invest across the whole market cycle. Most importantly you buy at the market lows.
Also, as with any kind of regular payment such as a mortgage or loan you adjust your life style around them and you don’t notice them.
You’re not committing big lumps of capital to the market at any one time so you should be less anxious.
With regular investments, market volatility becomes your friend.
Lump Sum Investment
You may not want to make regular investments and prefer ad hoc contributions. Having the flexibility to add o your portfolio whenever you want without excessive paperwork or admin is important. Also being able to do this without being slapped with sales fees and upfront commissions.
A word to the wise, if you have a warm fuzzy feeling about markets, everything is going well and you desperately want to invest, DON’T! Alternatively, when markets are really awful and putting money into them is the furthest thing from your mind then jump in.
Our natural instinct is to invest when things are going well and to avoid markets when they’re not. What this means is we are self-saboteurs, a modus operandi of buy high and sell low.
By the way we’d suggest that you do both combine the two and we can help you do that.
Why You Invest
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