The perception of financial freedom is different for everyone. But the guiding principle is that achieving it removes any financial burden, so that you can instead spend time enjoying your chosen lifestyle. Part of this journey is likely to include a focus on building your wealth through the use of an investment strategy.
Choosing your investments
When approaching any investment it will be important to take time to choose the asset classes with which you are comfortable. You may want to build a portfolio consisting of equities, commodities, bonds and cash, and it can make sense to do so; the value of diversification can make your portfolio more robust to market fluctuations.
Ultimately your decisions will need to be based on your own attitude to risk and personal preferences, and you may, for example, want to build in some sustainable or ethical funds. Do also think about the timeline you’re working to – you might need to consider more risk if you have a shorter timeframe, or be more conservative if your investments have time to go to work over a longer period.
Working with an investment manager
All investing involves risk. Investment managers are specialists who manage a portfolio of investments, and a good one can help you understand any risks better, and keep your portfolio at a level of risk that you’re comfortable with – whilst seeking to maximise any return. Holding a diversified portfolio of assets is vital in both controlling risk and optimising return over long periods. So it’s important to work with a manager who can select funds and choose fund managers from the whole of the market – and who is not swayed by any commercial arrangements which you’re unaware of.
It can also be useful to consider the type of investment you’re most comfortable with; active managers make investment decisions in an effort to outperform their benchmark, whilst passive managers track an index to gain exposure to a market or segment of a market. If you’re looking to choose an investment manager to work with our article may be a useful read.
Compounding your investments
It can take time and patience when it comes to investing, especially if you have longer time horizons. Compounding can be a useful consideration given it’s one big advantage; compound growth enables you to earn on the money your investments have already made. With rising inflation comes the reduction in the purchasing power of cash holdings, so it’s very important to consider investing cash in these situations.
There are other ways to maximise your investments too; some options including pensions, EIS schemes and AIM portfolios offer tax relief (which can be seen as free money). Finally don’t forget that starting investing earlier in your life can help you outperform those who begin later; ultimately you enjoy the benefit of compound growth over a longer period of time.
Starting investments with The Fry Group
At The Fry Group, we start with an initial meeting to determine your goals, so you can explain what you’d like to achieve and in what timeframe. It’s important to consider your personal circumstances and what proportion of your income and cash deposits you want to invest so that a sensible plan can be put in place.
Once your investments are set up, we’ll be on hand to answer any questions and will always complete an annual review to check everything is on track, and discuss any changes in your personal circumstances or future plans. We aim to develop a strong, ongoing client relationship to keep you up to date with trends and world market developments. This includes access to our regular programme of updates, reports and informative webinars.
As part of our process we will ensure you have access to a dedicated adviser team who will regularly review your investments, and be available to answer any questions you might have. We also offer our own Managed Portfolio Service, with a range of 50 strategies. This enables us to match your individual objectives and attitude to risk to a suitable portfolio which will provide an efficient and cost-effective approach to medium and long-term investment. Finally our tax specialists will be on hand to provide advice as and when you draw down on your investments so that you can make use of all the tax allowances and exemptions you are entitled to.
Get started on achieving financial freedom through investments today
The team at The Fry Group are well placed to support you with all aspects of your investment plans. Our core purpose is to help people achieve financial freedom, so that you can concentrate on enjoying your life – just as you want to.
To discuss any aspect of your investment plans, and take your first steps towards financial freedom, please contact your nearest office.
Would you like to find out more?
We are here to help with your wealth planning requirements. For more information, whatever your circumstances, please contact us today.