A Simple Guide in Investing During Uncertain Times

Investment 💲💲💲= Risk..

This is the perception of a lot of people especially those who have fears of investing. Did you know that the biggest risk in investing is YOU? You read that right! If we let our emotions drive our investments, chances are we will miss out on our goal. You have to remain objective in investing and have the discipline to stick to your plan, that is, if you have a good plan in place.

The current economic climate is unpredictable and uncertain, which can make it a challenge to invest your money. But understanding the risks and taking the right steps can help you make smart investments during uncertain times.

What if there is a way to mitigate or manage risk?

Here are some tips💡 to help you make the most of your money when the future is uncertain.

1. Diversify your portfolio🧺: One of the most important steps you can take to manage risk is to diversify your investments across different asset classes, such as stocks, bonds, real estate, and cash. This can help to reduce your overall risk because if one asset class performs poorly, the others may help to offset those losses. Do not put your eggs in one basket.

2. Have a long-term perspective📈: Short-term market fluctuations can be difficult to predict, but over the long term, the economy and markets tend to grow. By having a long-term perspective, you may be better able to ride out market downturns and be in a better position to take advantage of market upturns. It is not timing the market but time in the market that matters when you invest.

3. Stay informed📡: Stay informed about the economy and the markets, so you can make informed decisions. This includes keeping track of news and events that may impact the economy and markets, as well as staying up-to-date on the performance of the investments in your portfolio. Better yet, have a regular review of your account with your financial advisor and see how your investment is performing.

4. Consider working with a financial advisor🧑‍💼👩‍💼: A financial advisor can provide guidance and help you make investment decisions that are consistent with your goals, risk tolerance, and time horizon. Nowadays, especially millennials, tend to choose to manage their own investment but what they are not seeing is the opportunity to use their time to be more productive and do other things more important than looking after their own investment. Let the financial professionals do their job and look for better ways to make use of your time. Be efficient and maximize your resources.

5. Know your risk tolerance and time horizon📊🗓️: It is important to keep in mind that your investments should be based on your risk tolerance and investment horizon not just on the rate of returns. The market tends to recover and grow which is why choosing the right portfolio that aligns with your risk tolerance and time horizon is crucial in your investment.

Note that all this is general advice, it's important to consult with a financial advisor before making any important decisions as they can help you to create a personalized investment strategy that fits your unique needs and goals.

"Risk comes from not knowing what you are doing." - Warren Buffet

Try this:

Find out what your risk tolerance is in investing and you can see the mix of portfolios you can invest in. If you do not know how, reach out to a financial advisor to get an Investor Profile Questionnaire.