INVESTMENTS AND SAVINGS

Picture the scene in your mind’s eye. You get into a lift and press the button to go up to floor ten. It ascends. Just before floor five it jerks violently and stops. You look up through the glass roof of the lift and see it is suspended on one cable that is now frayed half way through. You do not feel comfortable and press the alarm fearing you are about to experience a sinking feeling. You cannot exit the lift fast enough. You never make floor 10.

Now imagine another day. You get in the lift to go to floor ten. It ascends. It jerks and stops halfway up. You look up through the lift ceiling and see ten cables suspend it and of these one is frayed. You do not feel anything like as alarmed and a few moments later the lift continues upwards. You exit at floor ten.

Which lift would you rather be in?

Now substitute cables for your investments. The analogy is that those who have been most disappointed by their investments are those who often have overly invested in just one sector (one cable). They have failed to diversify across a number of sectors (ten cables). If they picked technology based equity funds leading up to 2001 or almost any shares in the year ahead of 2001 the sinking feeling will have been alarming. There are many that have experienced this discomfort. Equally others may be disappointed with their with profits bonds – for more comment here see More Information.

A well-balanced investment strategy is one that is safely diversified and does not depend much on the fortunes of one type of investment or one investment company. It also has regard to time, meaning when access to funds is required. The investor’s attitude to risk is key as each savings and investment portfolio should be unique to the individual. Taxation too is important. Where possible all available tax shelters should be used provided the investment and savings plans suit the investor.

We urge readers to go for diversification in their portfolios and to do so within each of the low, medium and higher sections of their holdings. Lots of cables means you can better withstand (or possibly avoid) losses if one or two gets a little frayed!

We have experienced consultants who can advise you on all your investment and savings, be it by way of capital investment or monthly contribution. Our case studies show time and again how we have transformed the position of those who come to us for advice, diagnosis and treatment.

Do contact us for individual help and guidance or go to the Enquiry Form.