Investing 101: What Questions Do You Need to Be Asking?

KLOFinancial |

If you’re new to investing, it’s important to ask yourself a number of questions before diving straight in. We’ve written up a handy guide featuring some of the most useful questions you’ll need to know the answer to.

What do you want your investments to achieve?

There are a number of different factors you will need to consider before investing. One of these is what you want to achieve from your investments. For example, you may wish to pay-off your mortgage early. Here, it’s important to set out a clear objective in order to simplify the process of putting together an investment plan.

You will also need to take into account the volatility of your investments as well as the amount of time you would like to remain invested, in order to ensure you are not just simply focusing on the potential returns of your investments. This can help you to plan more carefully and ensure you are not taking on any more risk than needed.

Will it take up too much time?

If you’re a person with a busy lifestyle, you may feel that you don’t have the time to dedicate to investing.

However, it may be a case of dedicating just a few hours a year to focusing on your investments once they are up and running. There are many different ways you can invest for the future with a level of interaction that suits you, meaning you can find the easiest way of saving for the future. It’s important to speak to a financial adviser to assess how much time you are willing to spend on your portfolio and how your investments can fit into this.

How much risk are you willing to take?

Every investment comes with risk. This is why the risk of your investments is another factor that will need to be carefully considered, as well as the length of time that you will want to be invested for. For example, you may take less risk if you intend to invest for a longer period of time.

There are investments that could help you reach your goal without taking on unnecessary risk. Here, it’s important to speak to a financial adviser to ensure you are taking the appropriate amount of risk that suits you and your investment objectives.

What about ethical investments?

It’s important to consider how your investments impact the world. For example, you may wish to invest in companies that focus on sustainability or fair trade practices.

Often, ethical and sustainable investments are screened, either by an exclusionary or an inclusionary method. Exclusionary refers to picking and getting rid of the unethical or unsustainable investments in order to focus on those that are more likely to conform with ethical principles. Inclusionary screening refers to actively selecting companies that use ethical or sustainable practices.

What next?

If you’re looking for financial advice regarding investments, talk to our financial advice team. Please call on 01926 492406 or email us at to make an appointment.