Investing is a long-term activity and the higher the risk, the higher the potential return can be, and vice versa. But whatever our age, and irrespective of where we are in life’s journey, we have an obligation to ourselves and our families to maximise returns to meet our needs through to retirement. 

Our objectives must be regularly revisited to ensure they still satisfy changing personal circumstances. Some think cash is a safe haven but, in an era of low interest rates, returns are near zero and savings are vulnerable to erosion by inflation. 

Investors with huge cash deposits may miss out on gains available by staying loyal to long-term investments. So make better use of the ‘magic’ of compounding by re-investing income from investments. Re-investing income enables us to acquire more investments that also grow in value and boost returns. In simple terms - returns also earn returns.

TOP 12 INVESTMENT ERRORS

1. Delaying the start of your investment portfolio.

2. Waiting for that probably non-existent ‘perfect’ time to invest.

3. Failing to obtain proven, specialist, professional advice.

4. Not establishing clear investment goals and a route map designed to achieve those goals.

5. Failing to diversify sufficiently across a range of investment opportunities.

6. Focusing on misleading performance indicators.

7. Focusing too much on taxes.

8. Taking too much/too little/the wrong risk.

9. Letting emotions influence decisions. ‘Feelings’ are not reliable financial performance indicators.

10. Reacting to illogical media hysteria.

11. Forgetting inflation.

12. Our circumstances WILL change. So must our strategy.

The above was provided by Hartey Wealth Management Limited. Registered office: Hilliards Court, Chester Business Park, Chester, CH4 9QP.  Tel: 0808 168 5866.  www.harteywm.co.uk  Hartey Wealth Management Ltd is authorised and regulated by the Financial Conduct Authority