Top Tips for Private Investors in 2011
Looking to begin private investment in 2011? Here are some top tips for investors on how to make a worthy investment this year.
Make a New Year Check-up- Start yourST0-12X year with an investment check-up. Reviewing your finances after Christmas and into the early New Year is a great time to check up on old investments and pensions to see if they are working for you. Are they performing to their optimum? If not, now is the time to make changes.
Do Your Research - Before making any new investments do your research on-line or seek advice from an investment professional. Take a look at the fundamentals of the company in which you hope to invest. Consider the industry, in which you are investing, is it a growth industry or is declining? Does the company's market capitalization show room for growth?
Manage Risk - Diversify and don't put all your eggs in one basket. This will ensure you avoid over exposure to certain areas, BP, the banks best to avoid
Maximise tax allowances - Every investor will want to avoid tax where ever possible but not at all costs. Sensible planning, ISA usage and making the most of low CGT rates in comparison to income tax are the best ways to do this.
Be Charitable- Reduce your tax bill by gifting to family and charity. You can support the charities your respect by applying Gift Aid to donations plus Land and Shares can also be gifted to charity to avoid personal capitalST0-12W gains tax.
Have an Emergency Fund - When you're new to investing creating an emergency fund is an essential. The money should be in safe and liquid investments, finance professionals suggest three to six months of living expenses invested for emergency use can be a great starting point for any investor.
Don't invest what you're afraid to lose - If you're anxious about making an investment in case you make a loss, now may not be the right time for you to invest. Investments should be made with savings that are not essential to your everyday finances and therefore offer little inconvenience when held up in investments.
Don't make rash decisionsST0-025 and if in doubt, don't invest - By using all of the aforementioned tips above investors should ensure that no investment decision is rushed, but if in doubt don't make an investment without the advice of investment advisors.
Make a New Year Check-up- Start yourST0-12X year with an investment check-up. Reviewing your finances after Christmas and into the early New Year is a great time to check up on old investments and pensions to see if they are working for you. Are they performing to their optimum? If not, now is the time to make changes.
Do Your Research - Before making any new investments do your research on-line or seek advice from an investment professional. Take a look at the fundamentals of the company in which you hope to invest. Consider the industry, in which you are investing, is it a growth industry or is declining? Does the company's market capitalization show room for growth?
Manage Risk - Diversify and don't put all your eggs in one basket. This will ensure you avoid over exposure to certain areas, BP, the banks best to avoid
Maximise tax allowances - Every investor will want to avoid tax where ever possible but not at all costs. Sensible planning, ISA usage and making the most of low CGT rates in comparison to income tax are the best ways to do this.
Be Charitable- Reduce your tax bill by gifting to family and charity. You can support the charities your respect by applying Gift Aid to donations plus Land and Shares can also be gifted to charity to avoid personal capitalST0-12W gains tax.
Have an Emergency Fund - When you're new to investing creating an emergency fund is an essential. The money should be in safe and liquid investments, finance professionals suggest three to six months of living expenses invested for emergency use can be a great starting point for any investor.
Don't invest what you're afraid to lose - If you're anxious about making an investment in case you make a loss, now may not be the right time for you to invest. Investments should be made with savings that are not essential to your everyday finances and therefore offer little inconvenience when held up in investments.
Don't make rash decisionsST0-025 and if in doubt, don't invest - By using all of the aforementioned tips above investors should ensure that no investment decision is rushed, but if in doubt don't make an investment without the advice of investment advisors.
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