10 Investment Tips

August 1st, 2006

If you must play the market, don’t speculate to satisfy some emotional need. Recognise this behaviour as gambling.
Avoid tipsters.
Remember, most tax shelters are high risk. The reason you’re allowed to shelter tax at all is simply to encourage you to invest - often in things you would otherwise avoid.
Be wary of treating your home as an investment.
Never invest in anything you don’t understand or which cannot be clearly explained to you.
Be alert to how stockbrokers work. If a stockbroker manages £10 million, to earn his £100,000 salary, he must typically generate £300,000 in gross commission - that’s 3 per cent of the money. So, there is a need to keep your money turning, earning commission on every piece of “advice”.
Don’t invest in off-the-page advertising launches. They have no track record and often have more marketing than investment substance.
Write out your short, medium and long-term goals and stick with them.
Don’t forget about inflation.
The most financially successful people tend to save at least 20 per cent of their income.