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Tips for Successful Investing

Finance broker provides tips to help simplify and refine the process of investing.

Investing can be confusing for those who aren’t “in the business.” Today’s investment landscape is fraught with pitfalls for an inexperienced investor trying to “go it alone.” Though we always recommend going to a professional finance broker, here are some investment basics.

Tips for Successful Investing

Slow and Steady Wins the Race

Often, investors risk their chances of long-term success for short-term gains. Here is how the investment market works: when somebody wins short-term, somebody else loses. But over time, most people who stay in long term with solid investments “win” as the market grows. Long-term investing can give you peace of mind in the short term.

Diversification

We can only provide general concepts here and not individual advice. However, we can say that we encourage our clients to diversify their investments. Today’s “hot investment” can be tomorrow’s “cold fish.” There is security in diversification.

No Distractions

We help investors develop a personalised strategy based on their needs. Then, we recommend that they stick with it. Unfortunately, there is a lot of misinformation out there about “hot opportunities.” We see it as a distraction. Resist temptation to fly with the lemmings and stick to your plan.

Sustainable Cash Flow

We try to focus on assets that will generate and sustain cash flow. These are all examined on an individual basis with the investor, but income such as rents, interest and profits is usually more reliable than investments based on promises or “potential.”

Seek Professional Advice

We cannot state this strongly enough. If you want to be a successful investor, even a small, individual investor who just wants to have a decent retirement, you have to treat it like a business. And that involves surrounding yourself with professionals.

At Approved Financial Planners, we have more than 80 years combined experience in finance and investment. If you want to be successful, you require professional advice. Call our Perth office today for a consult: 08 6462 0888.