New contribution to our blog from HULT Private Capital regarding advice on investing for Solicitors:-
Whatever stage you are at in your career, putting your savings to work now could have a major impact on your financial future.
Amid low interest rates, investing is a substantial driver of capital growth for many legal professionals. If you have cash stagnating in your savings account, it may be time for you to join them. Here our experts at HULT Private Capital set out their seven central rules for solicitors looking to start investing.
Decide on your aims
Investing is a vehicle to get you to your financial goals. Knowing what you want your portfolio to be worth in a certain number of years helps guide your decisions about how much and how often to invest, as well as what risk spread would best suit your needs.
Having clear objectives for yourself also makes it easier to stick to your strategy long-term and avoid the temptation to dip into your pot before you should.
You should plan to keep your money invested for at least five years, and preferably much longer than that. This is so your investment has the opportunity to generate the returns you anticipate.
If you can’t spare the money you intend to invest for that long, don’t tie yourself in. Being forced to withdraw your investment early because you need the cash could leave you at a loss.
Know the risks
High returns are enticing, but they are usually accompanied by a greater risk to your money. It’s important to decide what level of risk you are comfortable with. Could you keep a cool head if the value of your portfolio dropped by 5 %? 10%? 20%? Find a balance between risk and returns that allows you peace of mind.
Remember, no investment is completely risk-free. There is always a chance that you will get back less than you put in.
Share the load
Minimise the risk of a general loss by spreading your funds across a selection of assets in various geographical regions. If one investment or regional market performs poorly, your other assets should hopefully prevent your portfolio’s overall health taking a plunge. However, remember that this is a strategic measure and not a guarantee against losses.
Don’t try to time the market
Everyone hopes that they will invest in an asset just before its value climbs and sell when it reaches its peak. Unfortunately, the market is unpredictable and trying to guess its movements is more likely to cost you gains than win you them.
Consistency is key. Buy and hold or regularly add money to your investment regardless of market blips. Avoid panic selling during a dip and instead watch for the value of your funds trending upwards in the long term.
Account for charges
Your overall returns will be affected by charges, so factor these in when considering where to invest. Management fees and other ongoing costs can have a considerable impact, as well as charges accompanying further purchases or reinvestments. Pay close attention when choosing between investment funds to avoid unexpected dents to your profit margin.
Ask the experts
Investing can be daunting. There is an overwhelming choice of assets, risk levels and strategies available to you and the fear of making a costly mistake can stop you taking action.
HULT Private Capital is here to support you throughout your investment journey. For help with any queries, please contact our team today.
HULT Private Capital - Boutique Investment Solutions for High Net-Worth Sophisticated Investors
At HULT Private Capital, we give our global client-base access to unparalleled investment portfolios offering robust and secure capital growth. We undertake a comprehensive analysis of your goals, values and long-term aims and curate a tailored portfolio for you from our exclusive selection of fixed bank guaranteed, property and asset backed investments.
Our Private Equity team are unrivalled in their field, with many years of experience connecting top advisors and experts within a range of investment areas with various partner companies. We have an excellent track record in successful projects, including those relating to acquisition, property investment and development.
By working with an investment team that cares passionately about your financial wellbeing, you can be sure that your money is being put to the best possible use. HULT Private Capital makes the investing process simple, open and secure, so you can shape your future with ease.
Disclaimer – This is information – not financial advice
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