Description

When creating your investment portfolio you should always pay close attention to spreading your savings to achieve diversity and spread your risk. In this episode Tony talks about why and how you should make this happen. 

KEY TAKEAWAYS

• A diversified portfolio manages your exposure to market volatility. 
• Managers manage the mix of investments at different levels, from high risk profiles to low, depending on market conditions. 
• Asset allocation means deciding how to spread your money across different asset classes including equities, bonds, property and cash among many others. 
• Bonds are essentially I.O.U.s issued by governments in return for an investment subject to a pre-agreed regular return for a fixed term. Higher risk bond issuers will have to offer higher returns to attract buyers, lower risk offers peace of mind to those with a more risk averse mindset. 
• When investing in shares, understanding the cause and effect of fluctuations is important. Higher profits will result in higher share prices and increased dividends, whereas sustained losses can place the business or dividend in jeopardy.

BEST MOMENTS

‘When trying to navigate the ups and downs of the market returns, investors seem to naturally want to jump in at the low and cash out at the highs.'

‘Geographical factors such as local economic growth, interest rates and the political background will also affect the weighting between markets within equities and bonds.'

‘As long as the issuer is still solvent at the time the bond matures, the investor will get back the initial investment of the bond.'

‘Companies perform best in an environment of healthy economic growth, modest inflation and low interest rates. A poor outlook for growth could suggest waning demand for the company's products or services.'

VALUABLE RESOURCES

Pension calculator - Pension Calculator | TT Wealth | Pension Specialist, Cardiff

Savings calculator - Free Savings Calculator | TT Wealth Cardiff

Tony Talks Wealth - https://omny.fm/shows/tony-talks-wealth  

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ABOUT THE HOST

Tony Thomas is a published author, one of the top financial advisers in the UK voted for by his clients, the first Chartered Financial Planner in the UK, Independent Financial Adviser, Mentor, Trainer. Life Planner and Money Coach. He is also a pension and investment specialist as well as the regional Chartered Champion for South Wales.  

“Live For Today, Invest For Tomorrow”

CONTACT

Tony's official website: https://ttwealth.co.uk/
Facebook: https://www.facebook.com/TonyThomas.IFA/
LinkedIn: https://www.linkedin.com/in/tonythomas2/

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