Bacall and Associates in Singapore

Bacall and Associates in Singapore: Top tips for choosing investments

Top tips for choosing investments


Use these tips and key steps to help find an investment that’s right for you.


1. Review your needs and goals


2. Consider how long you can invest


3. Make an investment plan


4. Diversify!


5. Decide how hands-on to be


6. Check the charges


7. Investments to avoid


8. Review periodically – but don’t ‘stock-watch’


Key investing steps


1. Review your needs and goals


It’s well worth taking the time to think about what you really want from your investments. Knowing yourself, your needs and goals and your appetite for risk is a good start, so start by filling in a money fact find.


2. Consider how long you can invest


Think about how soon you need to get your money back. Time frames vary for different goals and will affect the type of risks you can take on. For example:


If you’re saving for a house deposit and hoping to buy in a couple of years, investments such as shares or funds will not be suitable because their value goes up or down. Stick to cash savings accounts like Cash ISAs.


If you’re saving for your pension in 25 years’ time, you can ignore short-term falls in the value of your investments and focus on the long term. Over the long term, investments other than cash savings accounts tend to give you a better chance of beating inflation and reaching your pension goal.


3. Make an investment plan


Once you’re clear on your needs and goals – and have assessed how much risk you can take – draw up an investment plan. This will help you identify the types of product that could be suitable for you.


A good rule of thumb is to start with low risk investments such as Cash ISAs. Then, add medium-risk investments like unit trusts if you’re happy to accept higher volatility. Only consider higher risk investments once you’ve built up low and medium-risk investments. Even then, only do so if you are willing to accept the risk of losing the money you put into them.


8. Review periodically – but don’t ‘stock-watch’


Regular reviews – say, once a year – will ensure that you keep track of how your investments are performing and adjust your savings as necessary to reach your goal. You will get regular statements to help you do this. Find out more below.


However, don’t be tempted to act every time prices move in an unexpected direction. Markets rise and fall all the time and, if you are a long-term investor, you can just ride out these fluctuations.


Key investing steps


· Complete a money fact find

· Making an investment plan

· Do you need a financial adviser?

· Popular investments at a glance

· How to buy investments

· Review your savings and investments