When it comes to investing, it’s a great idea to plan for success. To discover a few excellent ways to plan out your upcoming investments, simply continue reading.
To create a balanced investment portfolio, it’s a wise idea to invest in investment opportunities which you can sell for a profit, in the short term as well as investments, which you plan to hold for over a decade. Such as investments which offer high dividends, which you’ll be able to collect for the foreseeable future.
Include weekly or monthly investments into your budget:
Just as it’s important to budget for your expenses such as your power bill, in order to prioritize investing, it’s critical to set money aside in your weekly or monthly budget, for new investments. You should aim to invest a minimum of 20% of your disposable income each month. As investments grow with time and the more money that you invest now, the richer that you’ll be in 10 or 20 years time.
Ensure that your investment portfolio boasts at least 4 different asset classes:
In order to decrease the risk that you take on as an investor, it’s a great idea to invest in at least 4 different asset classes. Instead of placing all of your investment funds into a single investment class, such as ordinary shares in the stock market.
Some examples of asset classes which you may want to consider investing in include private equity, ordinary shares, property shares, property, ETF funds, managed funds and precious metals.
Choose to invest in blue chip stocks:
The advantage of investing in blue chip stocks, is that they offer regular monthly dividends. Being paid dividends each month, instead of biannually is useful as you’ll be able to reinvest your dividends, straight away, in order to purchase new stocks. Which is useful as the quicker that you accumulate new stocks and shares the quicker your passive income will increase.
Open a forex account:
If you’re interested in buying and trading stocks online, it’s a smart idea to sign up for a forex account in South Africa. Which you’ll be able to use to buy and sell a wide variety of shares from the comfort of your home.
Set up automatic orders:
If there are shares which you’re interested in purchasing in a variety of different companies, you can set up automatic orders, so that if their share prices drop to a minimum limit which you’ve pre-selected, your orders will be automatically processed. This is a great idea if you don’t want to miss out on purchasing great shares at unbeatable prices. As you won’t have to waste your time double checking share prices each day. What happens if the shares which you’ve selected don’t reach your target price? In this scenario, your orders won’t be processed.
If you follow all of the investment planning tips which are listed out above, you should be able to plan for the future success of your investment portfolio. Which will allow you to reap the rewards of owning a profitable investment portfolio.