5 Tips to Consider Before You Make Investing Decisions

The ultimate investing tip? Consider these first before making the big investing jump!

The BBC News recently cited a study from Oxfam that says that the richest 1% of the world increased their share of the world’s wealth from just 44% in 2009 to 48% in 2014. Oxfam predicts that the wealth of this tiny portion of the world’s population is set to grow to 54% by 2020.

The same article states that to be able to be part of that 1% club, you would have to be worth over half a million pounds or close to 67 million pesos.

You have a lot of work to do if you’re aspiring to be part of that elite club. And sad to say, it would be near impossible to achieve that level of wealth working as an employee for a corporation.

You need to invest.

Build Your Own Investment Plan

But as with every endeavour, you don’t plunge into investing straight away without having a plan or a strategy. If you need professional advice on how to go about investing, you need to seek help from a certified investment advisors who can help you choose investments that will help you achieve your financial goals.

So whether you have that goal to be part of the 1% or if even if your goal is something a little more modest such as having enough funds to meet your financial needs when you retire—a financial advisor can help you out.

To help you plan your investment success, here are five investing tips to consider before you decide to invest.

1. Define your goal

You have to have a goal when you invest. Do you want enough funds for to put your kids through college? Do you want to have retirement funds? Or do you want to be part of the 1%? Having an idea of what you want in life can help you put a price on it so you know what to aim for and what investment options will get you there.

2. Set a time frame

Having defined your goal, you now know how much time you have left before you need that money. You don’t have to be as aggressive with your investments if you have a longer time frame. At the same time, it’s important that you set smaller goals as part of the bigger goal. These should serve as milestones by which you can measure where you stand.

3. Determine how much you can invest

You have bills to pay and mouths to feed (or at least you’ve got yourself to feed) so you can’t put all of your money into investments. You’ll have to study your expenses and other obligations (like loan payment) and how much emergency funds you need to have available.

4. Consult an investment expert

There are many well-known investors who studied the art and science of investing on their own such and started out as young investors. If you don’t feel comfortable with how much you know about the risks and potential rewards of an investment, you can always get help from a certified financial advisor for investment tips.

(Lianne: You can contact me here for your life insurance and investment proposal queries!)

5. Identify potential roadblocks

The road to riches is not a straight line. Ask any investor or entrepreneur who has been in business for a long time and they’ll tell you about the ups and downs along the way. If you decide to invest purely in stocks of one industry, you have to know the risks that that industry faces that can wipe away the value of your stock investments so you can respond appropriately if these risks ever materialize.

Saving Goes Hand-in-Hand with Investing

Saving as much money as you can—by being smart about your purchases from everything such as where you shop for clothes or even to which car insurance plan you sign up for— is indeed smart, but being thrifty will not be enough to help you earn the millions or at least, grow your wealth.

Invest as early as you can to get to your financial goals quicker.

—–Want to:
- get FREE life insurance proposal – to financially protect your family;
- get FREE VUL proposal – to financially protect your family and invest to make your money work for you so you can reach your target goal;
- open a mutual fund account – to make your money grow and increase in value over time?
—–Want to get started managing your money/budgeting/investing?
Contact me, your trusted financial advisor, through the following: 
Email: liannemarthamlaroya@gmail.com or liannemartha.m.laroya@sunlife.com.ph
Twitter: @MsLianneLaroya
Mobile: 0916 737 8741
We can even meet personally for a FREE financial planning session! Let me know so we can finalize a schedule that works. No obligation to do anything – except maybe share what you learned with your friends! :)

About Kyle Kam

Kyle Kam is an online marketing specialist for Moneymax.ph, the Philippines’ leading financial comparison website. Whenever he’s not working, he’s busy at home watching MMA videos the whole day. You may follow him on Twitter @undisputedkyle

One Response to 5 Tips to Consider Before You Make Investing Decisions

  1. Jessy Shaw says:

    Kyle, I really like your tip about consulting an expert before investing. I feel as though people sometimes start investing without any experience or advice. I have heard that some people use annuities in investing. Is that an option? I also really like your tip about potential road blocks. Looking ahead is always a good idea!

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