Doctor’s Guide To Investing

Hello this is Gemma at Clinic Alchemy. The Alchemist to give you tips on how to manage and grow your wealth.

In a recent Vlog I gave you an insight on things to consider before you invest your heard earned wealth. Known as TRAIT: Time, Risk, Accessibility, Investment Strategy, Tax.

In this Vlog I am going to give you the basic building blocks that we use to build a solid investment portfolio. Please note this is not advice, and it may be that your individual situation requires a more complex approach to investing.

Block number 1.

  1. Invest in a wrapper

A wrapper is quite simply an investment vehicle that has some tax benefits. For example an ISA, LISA, Pension and offshore bond.

Depending on the time frame of the investment (i.e. when you think you will need this money), you can then decide on what wrapper will be most appropriate for you.

It makes sense to invest in these wrappers if it fits within your overall investment objectives and time frame, in doing so your investment will grow virtually tax free.

Block number 2.

  1. Mange your investments under one roof, known as a Platform / Wrap

It is far easier to manage your investments if they are all with the same provider.

This is readily achievable by investing on a platform or wrap.

The platform / wrap will provide the wrappers as mentioned previously, while allowing you to invest in a large range of funds and in some instances stocks and shares.

By investing on a platform / wrap, really helps with the administration and management of your investments going forward.

When looking for an appropriate platform / wrap provider make sure you look at; how many funds they offer, and how much they charge in terms of; entry, exit, dealing and ongoing management charges.

Block number 3.

  1. Diversify your investments

Now you have the wrapper and the platform, it is now time to choose what you invest in.

Please, Please, Please, do not invest all your eggs in one basket. For example: one company or asset class.

You should have a well-diversified portfolio that invests in different asset classes globally.

For example a portfolio that invests in a combination of; equities, fixed interest, (government and corporate debt) and property, and invests in different geographical areas globally.

How much you invest in different asset classes and geographically should come down to your attitude to risk. For example an investment heavily weighted in equities in emerging markets is (as a rule of thumb) far more volatile than an investment predominantly in fixed interest in developed countries. Therefore the equity focused portfolio is only suitable for the risk loving- adventurous amongst you, those who are prepared to accept large drops in the value of the portfolio.

If the idea of managing your own hard earned wealth sounds bit scary and time consuming (it is), then don’t despair you can pay someone to do it for you. Alternatively you can choose a fund / managed portfolio that invests in a diversified portfolio on your behalf. Again there will be charges so just make sure you are aware of these as well as the funds track record before you invest your hard earned wealth.

So there are the basics of building a solid investment portfolio. This really just scratches the surface and in a further Vlog I will go into investing in more detail.

In the meantime remember the following;

  • With any investment it can go down as well as up.
  • If it offers high returns it probably means the risk on your capital is high.
  • If it sounds too good to be true it probably is.
  • And finally if you are unsure ask for help!

This is Gemma at Clinic Alchemy, if you like what you have heard feel free to give me thumbs up or spread the vlog.

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By |2019-07-23T12:39:34+01:00July 23rd, 2019|Invest|0 Comments

About the Author:

I’m a fellow, chartered financial planner whom specialises in advising on pensions, investments, and tax efficient planning to business owners, medical professionals, entrepreneurs and retirees. My goal is to help clients achieve their financial goals and aspirations, now and in the future. Through careful, smart, savvy planning, I will guide you through the complex maze of rules and investments and help you plan effectively for your future; investing in a clear, understandable, safe and controlled manner to ensure that ultimately, you achieve your financial plans and are not hit by an unexpected tax bill.

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