1.

Don’t follow fashion

The top ranking fund in July 2002 was ranked 1358th in July 2007
 ( Morningstar bid-bid sterling net income reinvested)

2.

Set  Specific  time horizons

If you are prepared to take some level of risk, set a specific time you are prepared to see how it performs.

3.

Decide on your rainy day money first

Everyone has a different stance on how much they need to set aside. Set up an easily accessible fund where you can get at your money in cases of emergency.

4.

Don’t get too attached to favourite funds

Of the top 150 performing funds five years ago, only three remain in the top 150 today.
(Morningstar 31.7.1997 to 31.7.2002)

5.

Bring together all your ISA’s and PEP’s

Look at consolidating your investments onto what is called a “platform” for easier administration, greater fund choice, greater manager choice, lower charges.

6.

Don’t listen to your mate in the pub!

In our experience, friends or colleagues who tell you how well they have done and you should do the same, do not always tell you the whole truth-and their risk profile and objectives may be very different to yours.

7.

Use up you ISA allowance

Generally, the no1 recommendation-utilize your ISA allowance by 5th April each year.

8.

In times of uncertainty, invest “ on the drip”

Pound Cost Averaging means that if you invest on a month by month basis rather than in one go, you buy units at different prices. This means that in a falling market, you buy more units.

9.

Use your annual Capital Gains Tax

Every person has an annual CGT allowance ( 2008/9 £9200). We will show you how you do not have to pay any tax on capital gains made.

10.

Don’t panic!

If, after making an investment, the value falls, don’t panic by selling it-remember that the investment was intended for medium or long term so that there will be times when it doesn’t perform as you would like.

11.

Investing for Children

If you want to invest for a grandchild school or university fees, remember that they have, on reaching 18, their own annual personal allowance up to which any income is tax free (2008/9 £5435 pa)

12.

Ethical or Green investing

There are now a whole range of funds- equities, bonds or mixtures of the two- where you can filter out certain types of industry ( i.e. smoking, armaments) that you would object to.

13.

Diversify your portfolio

Make sure your investments are spread not only between different types of assets ( bonds, equities) but also geographically so that you don’t put all your eggs in one basket.

14.

Do you know what your risk tolerance is?

The single most important investment choice to get right. What is high risk for one investor might be low for another.

15.  

Investment Bonds or open ended investment company?

Both of these investment vehicles are collectives i.e. they can contain many different types of asset class. Both are treated differently from a tax point of view.

16.

Split your assets with your partner and/or children

Make full use of all tax allowances the government give you by splitting investments or savings between you.

17.

Offshore Investing

Offshore Investing is not sole perogative of rich people-there are many reasons why people choose investing in the safe tax havens of Dublin or Isle of Man.

18.

Remain fully invested

Don’t decide to come out of the market when things get tough- it is worse to miss out on market recoveries when they arrive, and even harder to judge the time they do so.