Ten Top Tips for Investing

Ten Top Tips for Investing

Ten Top Tips for Investing | Financial Mappers

Glenis Phillips, the architect of Financial Mappers, has published her eBook, Map Your Finances – Learn the Art of Financial Mapping. In the final chapter, she details the Top Ten Tips for an investor. This is a list of those tips:

1. Write a financial plan and start today

It has been proven that a written plan plays an important role in financial success.

2. Diversify assets and buy in favorable cycles

Buy value when the opportunity presents. Over time, you should develop a diversified portfolio of investments.

3. Determine your risk tolerance

The three major risks are loss of capital from falling prices, the risk that inflation will devalue your purchasing power for cash assets, and that interest rates on loans will rise.

4. Don’t rely on average returns

Consider unfavorable returns at critical periods, rather than relying on long-term average returns.

5. Choose good debt over bad debt

Good debt allows you to build wealth by using other people’s money. Bad debt reduces your ability to save and invest by paying interest on items which do not build wealth.

6. Buy property to hold long term and manage shares and cash

To maximize tax advantage and reduce costs, holding real estate long term will usually deliver a sound long-term income. The volatility of share markets and bonds require that you actively manage these assets, resulting in shorter time periods of investment.

7. Know your expenses

With the increase in managed investment products and retirement accounts, the multiple combinations are almost impossible to calculate or understand.

8. Set targets for financial independence

Future-proof your financial plan through the use of insurance, building income-producing assets and reducing debt as you approach retirement years.

9. Prepare a retirement drawdown strategy

Your financial plan should include the ability to fund your retirement and protect the income against inflation. Consider how and when different assets will be sold.

10. Invest in yourself through education

Improve your financial knowledge so you can make intelligent financial decisions.

 

Glenis is the leading authority on financial mapping which is a holistic and dynamic means of managing Personal Finances and testing those plans with modelling tools for ‘what if’ scenarios.

Map Your Finances – Learn the Art of Financial Mapping is available on all Amazon and iTunes for $4.99. You can follow Glenis on Twitter (@TheFinMapper) where she has a set of video lessons to demonstrate how financial mapping software should work.

To start your own financial mapping journey, you can get started right now by visiting www.financialmappers.com.au, or join our Facebook and Twitter accounts for up to date financial news and tips.

 

Disclaimer: Financial Mappers does not have an Australian Financial Services License, does not offer financial planning advice and does not recommend financial products.

I am a founding board member of Plencore Wealth Ltd and Plencore Online Pty Ltd. I am the designer of the product Financial Mappers and Financial Mappers PRO, cloud based modelling software for Personal Finance. This software is sold on the web site www.financialmappers.com.au.I am an educator, investor and expert in both personal finance and mathematical modelling and the author of 'Map Your Finances'.I have both a Graduate Diploma in Applied Finance and Investments and a Diploma in Financial Advising from the Securities Institute of Australia. I also have a Financial Analysis Certificate, by Distance Learning from University of Technology, Sydney. I am a Senior Fellow and Senior Mentor of FINSIA.
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