How to Invest Your Money As A Self-Directed Investor
”Education is the most powerful weapon which you can use to change the world” – Nelson Mandela
You’ve decided it’s time to make your money work for you. And why not? If you make wise investments, your money will make money and you won’t need to work as hard or for as long. Nonetheless, the decision to invest is a big decision to make. Especially if you’re considering self-directing your investments. After all, only one person will be responsible for decisions … You. But that doesn’t mean you can’t have help. Which is exactly why we have written this guide. It’s been designed for you, the budding self-directed investor. It will give you the knowledge, insight and tools you’ll need to make successful self-directed investments that put your money to work.
Ready to invest? Great! But how ready are you? Because investing is a wonderful way to make more money and even change your entire lifestyle. If things go well. This is why you’ll want to think about what you’re doing before you do it. So, let's start with the investment basics.
This chapter focuses on the different types of investments. Understanding your investments is vital to achieving a successful outcome. As such, you’ll be introduced to the different types of investments and products that are out there.
The amount of risk you're willing to take has a big influence on the type of investments that suit your needs. But how do you define your risk tolerance? Let's find out.
There is no point in investing unless you have a clear reason to do so. That’s why it’s time to decide on your investment objectives. Do you want to generate extra income to pay for your basic needs? Are you preparing for retirement? Perhaps you don’t have any clear-set need now, but want to invest and save money so you’ll be able to afford to do what you like later in life. In this chapter, you'll learn exactly how to pick your investment objectives.
After you've decided on your investment objectives, it's time to pick the right investment style to suit your investing needs. By investing in single stocks? Or would you prefer instant access to more diverse investments through a fund? Will you update your investments frequently? Put them in the hands of an expert? Or take the ‘do nothing’ approach? There are several possibilities and there’s only one person to decide which one is best for you. In this chapter, we show you the upsides and downsides for each of them to help you decide.
Building your investment portfolio is the trickiest part of investing. But it’s also the most fun part. Because now you combine your investment objectives, your risk tolerance and your investment style to a solid strategy. In this chapter, you’ll learn how to build your investment portfolio from scratch.
You’ve made your investments. What now? You’ll probably want to keep an eye on your portfolio. Because you still need to stay on top of all the different risks that might arise. You need to know how to manage these risks, as well as how to approach reinvestments. In this chapter, you’ll learn all about investment management. Or how to keep the taxman away and optimise your tax savings. And we show you the best practices for taking back money from your investment honey pot.