TT Wealth show you how Wealth Management Services can help you make your money work harder, without taking undue risk

Tony Thomas is a Chartered Financial Planner who has spent decades helping individuals and families across Wales and the UK  build, protect and grow their wealth with confidence.

His approach focuses on clarity, long-term relationships and practical advice, not product sales.

Chartered Financial Planner · Fellow of the Personal Finance Society (FPFS)
Authorised and regulated by the Financial Conduct Authority · FCA Individual Reference Number: AXT00118

If you’ve got enough money in your cash savings account to cover you for at least six months, and you want to see your money grow over the long term, then you should consider investing some of it.

Investing is a lifelong process, and the sooner you start, the better off you may be in the long run.

Deciding whether to invest depends on how comfortable you are with taking chances, what your current financial situation is like, and what you want for the  Future. Investing isn’t the same as just saving your money because there is the chance to either gain or lose money.

For instance, if you plan to retire soon, it might not be a good idea to invest all your savings in something with a high level of risk.

You may be a few months away from putting down a deposit on your first home loan. In this case, you might be considering cash or term deposits. You might also choose a more conservative investment that keeps your savings safe in the short term.

On the other hand, if you have just recently started working and saving, you may be happy to invest a larger sum of your money into a higher risk with higher potential returns, knowing you won’t need to access it in the immediate future.

If appropriate, you should consider a range of different investment options. A diverse portfolio can help protect your wealth from market ups and downs. There are four main types of investments, with individual benefits and risks.

These are:

The various assets owned by investors are called ‘investment portfolios’. You can invest directly in these assets, or you may prefer a managed fund that offers a range of different investments and is looked after by a professional fund manager.

Growth investments aim to increase in value over time, as well as potentially pay out income. Because their prices can rise and fall significantly, growth  nvestments may deliver higher returns than defensive investments, focusing more on generating regular income rather than growing themselves. However, you also have a stronger chance of losing money.

The two most common types of growth investments are shares and property.

Risk capacity is influenced by factors such as your age, wealth, and the goals you are saving and investing for. Your capacity for risk is likely to change over the course of your life as your personal circumstances change.

If you understand the risks associated with investing and know how much risk you are comfortable taking, you can make informed decisions and improve your chances of achieving your goals. Often, higher-risk investments offer the chance of greater returns, but there’s also more chance of losing money.

Risk means different things to different people, and independent financial advisers are a great tool to help you make the right choice.

Stock market investments might beat inflation and interest rates over time, but you run the risk that prices might be low when you need to sell. This could result in a poor return or, if prices are lower than when you bought, losing money.

You can’t escape risk completely, but you can manage it by investing for the long term in a range of different things, which is called ‘diversification’. You can also look at paying money into your investments regularly rather than all in one go. This can help smooth out the highs and lows and cut the risk of making big losses.

Some investments can decrease in value, and you may not get back what you invested.

The stock market will fluctuate in value daily, sometimes by large amounts. You could lose some or all of your money depending on the company or companies you have bought. Other assets, such as property and bonds, can also fall in value.

Speaking with a financial advisor will give you the best chance of meeting your financial goals without losing your money, as financial advisors have a deeper understanding of investment management techniques.

One of the most important aspects of investing is diversification. Whether the market is bullish or bearish, maintaining a diversified portfolio is essential to any long-term investment strategy.

Diversification allows an investor to spread risk between different kinds of investments to potentially improve returns. This helps reduce the risk of the overall investments underperforming or losing money. With some careful investment planning and an understanding of how various asset classes work together, a properly diversified portfolio provides investors with an effective tool for reducing risk and volatility without necessarily giving up returns.

There are many opportunities for diversification, even within a single kind of investment.

For example, with shares, you could spread your investments between:

Please get in touch if you want help creating a diversified investment portfolio.

Whether it’s termed ethical, responsible or sustainable investing, the aim is generally the same. It’s investing your money in businesses which have some intention of making the world a better place. In the past, ethical investing was the only option if you wanted to invest in companies aligned to your values. But this ‘good money’ sector has moved on a lot in recent years.

Ethical is now just one of many options you can choose from. Green and ethical investments look at the wider impact of investing on society and the environment when seeking financial returns. They take into account social or environmental considerations in addition to financial criteria.

Just as you can now choose from a range of green or ethically produced goods in your local supermarket, you can also choose financial products that have positive benefits for the environment and society.

If you would like advice or guidance on building an ethical savings or investment strategy, then get in touch with a  certified financial planner today.

For Wealth Management / Asset Management Advice in Cardiff and across the UK, please call Tony Thomas on:

Mobile: 07585 592494

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