‘It’s not about finding the next Microsoft.’ Pictured, Bill Gates
Photo: REUTERS
1. ‘Pay off debt’ – Danny Cox, Hargreaves Lansdown
The repayment of debt is the best investment you can ever make. The recession
means fewer job opportunities, wage cuts, and rising unemployment. In order
to protect yourself, it is wise to repair your personal balance sheet.
Reduce your spending and use the money you save to reduce personal debt first
(credit cards, overdrafts, store cards, loans), then your mortgage. Build a
cash cushion to help meet unexpected bills or to cover expenditure if your
income falls.
A cash Isa is the ideal tax-free savings account to start with. Up to £3,600
can be saved into one in each tax year; for those aged 50 or over on the
October 6 the limit is £5,100.
2. ‘Investment basics’ – Chris Wicks, N-Trust
Try not be swayed by media hype and remember the basics of investment. Assess
how much risk you want to take, take into account how long you wish to
invest for and apply an asset allocation (split between equities and fixed
interest) appropriate to your risk profile and term of investment.
Choose low-cost funds that are adequately ersified in order to reduce risk
and rebalance periodically to ensure that the correct risk profile is
maintained. Be wary of products purporting to offer guaranteed returns, as
they may not be what they seem, and always keep a reasonable cash reserve.”
3. ‘Inflation will return’ – Simon Gibson, Atkinson Bolton Consulting
Equities here and overseas are now probably, on the whole, fair value, if not
cheap. The question is what to buy. One needs to hedge the portfolio against
inflation, which, although months and possibly years away, will come back
and bare its teeth.
In Britain but perhaps especially overseas one needs to invest …
Read the original article at Telegraph
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Tags: account, britain, buy, Car, Cards, cash, Credit Cards, deal, debt, finance, fund, Inflation, Job, loans, money, mortgage, pay, Recession, savings, UK, Unemployment
