Christmas has come and gone and a new year is upon us.
The break was fantastic and ensured that I was able to recharge the batteries. I had the opportunity to catch up with family and friends over many different social occasions.
Working in the finance profession, when I am introduced to new people at these social occasions I often get asked; ‘so where should I invest my money?’
This question is asked of me by people of all ages and each time I wish I had a simple answer for them.
Investing money needs to have a purpose behind it. There needs to be a reason as to why anyone would buy a share, a property or simply hold money in a bank account. So when I get asked this question, I always ask back; ‘What are you trying to achieve?’
Do you want to buy a house? Do you want to save money for your children’s education? Do you want to have a steady income when you retire? Do you want to pass money onto your family when you pass away?
All of these potential objectives will have different time frames which will assist in formulating an appropriate investment strategy.
Another important element within any investment strategy we formulise is diversification. It is not often that we will simply recommend that a client invest into one asset. From an investment point of view, this carries too much risk.
As a financial advisor it is my job to ensure that the client is able to maximise the opportunity of meeting their financial objectives whilst minimising risk. Recommending that a client simply buy BHP or a property may place that client’s financial position at unnecessary risk.
It is important for a client to always understand why they may be investing into an asset and what they hope to achieve from doing so.
We make sure that our clients have this knowledge within their own investment portfolios.
From the team here at Horvat Financial Advisors we wish you all the very best for 2011. We look forward to continuing to provide unbiased, independent advice to our current and future clients.
Kind Regards,
Rick Horvat.