As young professionals, it is important to understand the landscape of investing and how to grow your finances through different options.
There are many things to consider when investing, but one of the most important is your time horizon. This refers to how long you are willing to invest for. If you are young and just starting out in your career, you have a longer time horizon than someone who is closer to retirement. This is important to keep in mind because it will have an impact on the types of investments you make.
One also needs to decide what your investment goals are. Are you looking to retire early? Or are you simply looking to grow your wealth? Once you have decided on your goals, you need to start thinking about how to achieve them.
There are several different investment products available, each with its own set of risks and rewards. For example, stocks and shares can offer the potential for high returns, but they are also subject to market fluctuation. Property can be a more stable investment, but it is also more expensive. The key is to find the right balance of risk and reward for you.
You need to understand that there is no one-size-fits-all approach to investing. So, it is important to figure out what works best for you. Remember that within investing, diversification is key. Do not put all your eggs in one
basket.
A good adviser can help you develop a personalised investment plan that meets your unique needs.
*Mignon du Preez is the Group Marketing, Public Affairs and Sustainability Executive at Old Mutual.