The year is rolling into its first quarter. If you want to start afresh or overhaul your Isa portfolio, there’s still time. To help you kick things off on the right foot, here are simple tips and tricks that can help you become a better investment this 2015:
Emulate expert investors
In order to get investing right, you need not look elsewhere. Pick the greatest investors in history and learn from them. Experts like Warren Buffet and Benjamin Graham, for example, are worth emulating. They are the epitome of investors who know what they’re talking about and are more than willing to share it with you. All you need to do is take heed, study what they do and copy them to reap the similar investment rewards.
Take reasonable risks
No one wants to lose money, that’s for sure. Unfortunately, this fear can cost you more in the long run. Some investors refuse to take greater risks on their investments because the next recession may happen and they can lose all their money along the way. This is one mistake most parents often commit. Rather than invest in stocks for their children’s future, they opt for low interest investment mediums. They forget that they have 18 years to let the investment grow which is also more than enough time to recover in case the stock market recesses in between.
Inject balance to your portfolio
When some of your investments are performing well, those certain investments will also become the larger part of your portfolio. There’s a downside to this. Your portfolio is no exposed to these particular investments thereby increasing risks. In order to lower the risks, you can rebalance your portfolio by selling the winners or transferring the profits to a bank or areas with better values.
Pay your bills and invest at the same time
Rather than simply pay your bills via direct debit, you can use your Isa investment instead. Spread the investment into monthly payments and you further inject balance to your stock market investments. This reduces the risks of you buying stocks at the wrong time.
Always opt to reinvest dividends
Reinvesting dividends is a golden rule in investment. Just ask any expert and they’d only reaffirm the same truth. In order to be a better investor this 2015, you must strive to always reinvest dividends and not withdraw it to add to your income. Those dividends when reinvested will only benefit you most in the end. You’ll earn more money than if you withdraw and spend them on other things.
Avoid following the crowd
As the Isa season deadline is getting closer, you may have the tendency to follow the heard and invest in the most popular funds at the moment. Avoid committing the common mistake by not rushing your investment decision just because the deadline is closing in. Instead, always focus on good value investments to make your money work for you.