One Four Nine Wealth – Guide to successful investing
Whether you’re planning to build a nest egg, investing for your children or planning for a wealthier retirement.
Investing serves as a mechanism for amplifying your wealth. It can assist you in expediting the repayment of your mortgage, augmenting your retirement savings or safeguarding your child’s financial future. However, before you invest your money, be ready for a long-term engagement.
Though your money is safe in a bank, fluctuating interest rates and inflation may diminish its value over time. On the other hand, invested money can potentially increase in value, though there’s also a risk it could decrease. Investing might not suit you if you cannot commit your money for at least five years.
Maintaining an emergency fund sufficient to cover three to six months of living expenses is prudent before investing. This fund can provide reassurance that you have a financial safety net for unexpected events without tapping into your investment capital.
There are numerous investment avenues, most of which expose you to various ‘asset classes’. Each asset class carries differing risk and return profiles. Generally, the risk level corresponds with the potential return or loss, implying that high-risk asset classes offer the possibility of higher returns but also greater losses.
Read our compact six-page guide to successful investing below.
The value of investments and any income they produce can fall as well as rise. You may get back less than you invested.
