The stock market journey is the fastest and easiest way for you to reach your financial goals. Here are the six steps that every investor goes through
Step 1: Is the Stock Market right for me?
Before you begin investing that’s the first question you should ask yourself. If you already have a stock ISA or SIPP, then you’ve already answered that question. For those who have cash sitting in a bank then the following videos may be of help to you.
Step 2: Which asset classes are right for me
Now that you’ve decided that the stock market is the best vehicle to grow your wealth you need to compare them to the other asset classes, and specifically cash, bonds and property. Each asset has its pros and cons and understanding them is important so you know what to avoid in the future.
Step 3: Lets Get Started
Now it’s time to decide on what type of service you want, and the all-important question of which firm to work with. If you’re looking for an execution only account there are dozens of firms that can offer you a cheap, online platform from Hargreaves Lansdown to Interactive Investor and they all do a pretty comparable job.
However, if you want an advisory service where your investments are managed for you then this is probably the most important decision that you are going to make. You need to choose a firm that can become your investment partner for the long term and that you can trust to deliver you results over the long term.
Step 4: Which Products & Services should I choose?
This step is all about keeping your tax bill to an absolute minimum. The great news about the stock market is that the Government encourages you to invest through stock ISAs and SIPPs which means that you can make profit without paying any tax. This is one of the key advantages of the stock market over the property market which is now very tax-inefficient.
Step 5: What's the most profitable Investment Strategy that I can follow?
This is where it becomes interesting because you’re at the stage where you get to build your portfolio. The great news is that you can make money and at the same time support those businesses that have a high ethical policy. Get rich and make a difference!
Step 6: How do I bump up my returns but reduce my risk?
Once you start investing and growing your portfolio the next step is to start learning the short cuts and strategies that the professionals use to increase their returns. Like any skill, you will learn over time how to become better at extracting money from the stock market and here we share with you some of our best tips.
