Getting started with strategic investing

Investing can be a difficult task for many people, whether you’re a beginner or even an experienced investor.

To effectively tackle this challenge, one of the best ways to get started is by implementing a more strategic approach to your investments.

But how can this be done?

Read on to learn how you can begin strategic investing to build your wealth efficiently for the future.

Don’t feel you need to invest alone

A misconception that many investors have is that their investment journey must be completed alone, with every decision being solely down to them.

The truth is – you’re able to obtain the professional guidance of a financial expert to aid in your investments.

Your advisers can help you build the right investment strategy from the bottom up, starting with a full evaluation of your income, assets, and goals.

With every decision, you can receive expert counsel from your adviser to help find an approach that’s rightfully suited to your specific situation.

Assess your situation and risk levels

You can also start strategic investing by paying close attention to how your portfolios align with your unique situation.

For example, you may be at a place in your financial journey where a low-risk approach suits your goals better. As such, your adviser could suggest things like a liquid reserves portfolio, to help you grow your wealth more suitably.

Alternatively, if you find room to invest in higher-risk markets without putting your wealth resilience at risk, your adviser can help you choose the appropriate portfolios.

By aligning your investments more accurately, you can increase your chances of successful returns, alongside protecting your wealth more effectively.

Consider tax-efficient accounts

Another way you can be more strategic with your investing is to consider how you could be more tax-efficient with your approach.

There is a wide range of investment accounts that provide tax allowances – often known as tax wrapper accounts – to help you minimise tax charges when building your wealth.

For instance, if you’re saving for retirement, you could invest in a pension to receive up to £60,000 of tax-free savings each year – as of the 2023/2024 tax year.

Also, you could invest in an Individual Savings Account (ISA) to save up to £20,000 tax-free each year.

By taking into account tax efficiency when investing, you can grow your wealth whilst minimising the impact of tax on your savings.

Keep an eye on external factors

An effective way to invest your money more strategically is to monitor external factors and use this to direct your process.

Many things could impact your investments, such as differences in inflation and interest rates, changes in the markets, and the outcome of financial statements.

You can have regular meetings with your financial expert to review these factors and establish the most suitable investment decisions to navigate these impacts effectively.

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By putting these simple steps in place, you can begin taking a more strategic investment approach to effectively build your wealth.

More importantly, strategic investing can grow your money in a way that’s tailored to your unique situation.

Going forward, how will you be implementing strategy into your investment decisions?

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Please note, the value of your investments can go down as well as up.