File: //old_home_backup/answerbag.co.uk/public_html/investing.html
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html lang="en-GB" xmlns:fb="http://ogp.me/ns/fb#" xmlns:addthis="http://www.addthis.com/help/api-spec" prefix="og: http://ogp.me/ns#">
<head><meta http-equiv="Content-Type" content="text/html; charset=UTF-8" />
<meta charset="UTF-8">
<meta name="viewport" content="width=device-width, initial-scale=1" />
<title>Investing – Answer Bag 2019 </title>
<meta name="robots" content="noodp,noydir"/>
<meta name="description" content="Our consumer guide to investing shows you how to implement smart and effective investing strategies."/>
<link rel="canonical" href="http://www.answerbag.co.uk/investing" />
<meta property="og:locale" content="en_GB" />
<meta property="og:type" content="article" />
<meta property="og:title" content="Investing – Answer Bag" />
<meta property="og:description" content="Our consumer guide to investing shows you how to implement smart and effective investing strategies." />
<meta property="og:url" content="http://www.answerbag.co.uk/investing" />
<meta property="og:site_name" content="Answer Bag" />
<meta property="og:image" content="http://www.answerbag.co.uk/wp-content/uploads/2013/08/investing.png" />
<!-- / Yoast WordPress SEO plugin. -->
<link rel='stylesheet' id='monthly-mortgage-css-css' href='../wp-content/plugins/simple-monthly-mortgage-calc/monthly-mortgage-style.css' media='all' />
<link rel='stylesheet' id='totop-css' href='../wp-content/plugins/totop-link/totop-link.css' media='all' />
<link rel='stylesheet' id='output-css' href='../wp-content/plugins/addthis/css/output.css' media='all' />
<link rel='stylesheet' id='usquare-css-css' href='../wp-content/plugins/usquare/css/frontend/usquare_style.css' media='all' />
<link rel='stylesheet' id='customfont1-css' href='../wp-content/plugins/usquare/fonts/ostrich_20sans/stylesheet.css' media='all' />
<link rel='stylesheet' id='customfont2-css' href='../wp-content/plugins/usquare/fonts/PT_20sans/stylesheet.css' media='all' />
<link rel='stylesheet' id='contact-form-7-css' href='../wp-content/plugins/contact-form-7/includes/css/styles.css' media='all' />
<link rel='stylesheet' id='digg-digg-css' href='../wp-content/plugins/digg-digg/css/diggdigg-style.css' media='screen' />
<link rel='stylesheet' id='DOPShortcodesStyleInteractiveElementsIcons-css' href='../wp-content/plugins/dop-shortcodes/assets/gui/css/style-dopshortcodes-interactive-elements-icons.css' media='all' />
<link rel='stylesheet' id='DOPShortcodesStyleSocialIcons-css' href='../wp-content/plugins/dop-shortcodes/assets/gui/css/style-dopshortcodes-social-icons.css' media='all' />
<link rel='stylesheet' id='DOPShortcodesStyle-css' href='../wp-content/plugins/dop-shortcodes/assets/gui/css/style-dopshortcodes.css' media='all' />
<link rel='stylesheet' id='papergrid-css-css' href='../wp-content/plugins/papergrid/css/papergrid-frontend.css' media='all' />
<link rel='stylesheet' id='symple_shortcode_styles-css' href='../wp-content/plugins/symple-shortcodes/includes/css/symple_shortcodes_styles.css' media='all' />
<link rel='stylesheet' id='toggler-style-css' href='../wp-content/plugins/toggler/css/toggler.css' media='all' />
<link rel='stylesheet' id='ubermenu-basic-css' href='../wp-content/plugins/ubermenu/standard/styles/basic.css' media='all' />
<link rel='stylesheet' id='ubermenu-flat-green-css' href='../wp-content/plugins/ubermenu-skins-flat/skins/green.css' media='all' />
<link rel='stylesheet' id='normalize-css' href='../wp-content/themes/consumer/normalize.css' media='all' />
<link rel='stylesheet' id='style-css' href='../wp-content/themes/consumer/style.css' media='all' />
<link rel='stylesheet' id='print-css' href='../wp-content/themes/consumer/print.css' media='print' />
<link rel='stylesheet' id='debt_style-css' href='../wp-content/plugins/debt-calculator/css/debt.css' media='all' />
<link rel='stylesheet' id='page-list-style-css' href='../wp-content/plugins/page-list/css/page-list.css' media='all' />
<link rel='stylesheet' id='zilla-share-css' href='../wp-content/plugins/zilla-share/styles/zilla-share.css' media='all' />
<link rel='stylesheet' id='mr_social_sharing-css' href='../wp-content/plugins/social-sharing-toolkit/style_2.1.2.css' media='all' />
<link rel='stylesheet' id='mr_social_sharing_custom-css' href='../wp-content/uploads/social_sharing_custom.css' media='all' />
<script type='text/javascript' src='../js/jquery.min.js'></script>
<script type='text/javascript'>try{jQuery.noConflict();}catch(e){};</script>
<script type='text/javascript' src='../wp-content/plugins/simple-monthly-mortgage-calc/jquery.validate.js'></script>
<script type='text/javascript' src='../wp-content/plugins/contact-form-7/includes/js/jquery.form.min.js'></script>
<script type='text/javascript' src='../wp-content/plugins/simple-monthly-mortgage-calc/monthly-mortgage-actions.js'></script>
<script type='text/javascript' src='../wp-content/plugins/totop-link/totop-link.js'></script>
<script type='text/javascript' src='../wp-content/plugins/usquare/js/frontend/jquery.easing.1.3.js'></script>
<script type='text/javascript' src='../wp-content/plugins/usquare/js/frontend/jquery.usquare.js'></script>
<script type='text/javascript' src='../wp-content/plugins/usquare/js/frontend/jquery.mousewheel.min.js'></script>
<script type='text/javascript' src='../wp-content/plugins/usquare/js/frontend/jquery.tinyscrollbar.min.js'></script>
<script type='text/javascript' src='../wp-content/plugins/better-wordpress-showhide-elements/showhide.js'></script>
<script type='text/javascript' src='../js/jquery-ui.min.js'></script>
<script type='text/javascript' src='../wp-content/plugins/dop-shortcodes/assets/js/jquery.dop.ImageLoader.js'></script>
<script type='text/javascript' src='../wp-content/plugins/toggler/js/toggler.min.js'></script>
<script type='text/javascript' src='../wp-content/plugins/debt-calculator/js/calculator.js'></script>
<link rel='stylesheet' id='wop-css' href='../wp-content/plugins/widgets-on-pages/wop.css' type='text/css' media='all' />
<!-- UberMenu CSS - Controlled through UberMenu Options Panel
================================================================ -->
<style type="text/css" id="ubermenu-style-generator-css">
/* Image Text Padding */
#megaMenu .ss-nav-menu-with-img > a > .wpmega-link-title, #megaMenu .ss-nav-menu-with-img > a > .wpmega-link-description, #megaMenu .ss-nav-menu-with-img > a > .wpmega-item-description, #megaMenu .ss-nav-menu-with-img > span.um-anchoremulator > .wpmega-link-title, #megaMenu .ss-nav-menu-with-img > span.um-anchoremulator > .wpmega-link-description, #megaMenu .ss-nav-menu-with-img > span.um-anchoremulator > .wpmega-item-description{
padding-left: 23px;
}
/* Custom Tweaks - UberMenu Style Configuration Settings */
#megaMenu ul.megaMenu > li.menu-item { padding: 0px 10px; }
#megaMenu.wpmega-preset-flat-green ul.megaMenu > li.menu-item.current-menu-item > a,
#megaMenu.wpmega-preset-flat-green ul.megaMenu > li.menu-item.current-menu-parent > a,
#megaMenu.wpmega-preset-flat-green ul.megaMenu > li.menu-item.current-menu-ancestor > a {
background: none;
}
#megaMenu.wpmega-preset-flat-green {
background: #505050;
}
#megaMenu.wpmega-preset-flat-green ul.megaMenu > li.menu-item:hover > a,
#megaMenu.wpmega-preset-flat-green ul.megaMenu > li.menu-item > a:hover,
#megaMenu.wpmega-preset-flat-green ul.megaMenu > li.menu-item.megaHover > a,
#megaMenu.wpmega-preset-flat-green ul.megaMenu > li.menu-item:hover > span.um-anchoremulator,
#megaMenu.wpmega-preset-flat-green ul.megaMenu > li.menu-item > span.um-anchoremulator:hover,
#megaMenu.wpmega-preset-flat-green ul.megaMenu > li.menu-item.megaHover > span.um-anchoremulator {
background-color: #39b54a;
}
</style>
<!-- end UberMenu CSS -->
<!--[if lt IE 9]>
<![endif]-->
<link href="http://fonts.googleapis.com/css?family=Open+Sans" rel="stylesheet" type="text/css">
<link href='http://fonts.googleapis.com/css?family=Josefin+Slab' rel='stylesheet' type='text/css'>
<link href='http://fonts.googleapis.com/css?family=Coming+Soon' rel='stylesheet' type='text/css'>
<link href="../css/font-awesome.css" rel="stylesheet">
<!-- BEGIN Tynt Script -->
<script type="text/javascript">
if(document.location.protocol=='http:'){
var Tynt=Tynt||[];Tynt.push('c1QhN2eyyr4559acwqm_6r');
(function(){var s=document.createElement('script');s.async="async";s.type="text/javascript";s.src='http://tcr.tynt.com/ti.js';var h=document.getElementsByTagName('script')[0];h.parentNode.insertBefore(s,h);})();
}
</script>
<!-- END Tynt Script -->
</head>
<body class="page page-id-168 page-parent page-template page-template-template-2-php investing">
<div class="page-wrapper">
<div class="shadow-wrapper">
<header>
<div class="cookies" style="padding-bottom:4px; margin-top:-1px; width: 100%; height: auto;"><center><font style="font-family:'Open Sans', sans-serif;font-size:12px;">When you visit our website, we may send you a cookie. To learn more, please refer to our <a href="../privacy-policy/">Privacy Policy</a>. By continuing to use our website, you agree to this.</font></center>
</div>
<div class="cookies-mobile" style="padding-bottom:4px; margin-top:-1px; width: 100%; height: auto;"><center><font style="font-family:'Open Sans', sans-serif;font-size:12px;">By continuing, you agree to our <a href="../privacy-policy/">Cookie Policy</a>.</font></center>
</div>
<div class="frame">
<div class="logo"><a href="/"><img src="../wp-content/uploads/2013/10/logo_final.png" alt="" /></a></div>
<!-- search -->
<div class="search-form cf">
<form method="get" action="/" role="search">
<input class="text" type="search" name="s" value="Search" onfocus="if(this.value==this.defaultValue){this.value=''}" onblur="if(!this.value){this.value=this.defaultValue;}" />
<input type="image" src="../wp-content/themes/consumer/i/search-btn.gif" alt="Find" class="btn" />
</form>
</div>
<!-- /search-form -->
</div>
<!-- /frame -->
</header>
<!-- /header -->
<nav class="menu-uber">
<div id="megaMenu" class="megaMenuContainer megaMenu-nojs wpmega-preset-flat-green megaResponsive megaResponsiveToggle wpmega-withjs megaMenuOnHover megaFullWidth megaMenuHorizontal wpmega-noconflict megaMinimizeResiduals megaResetStyles"><div id="megaMenuToggle" class="megaMenuToggle">Menu <span class="megaMenuToggle-icon"></span></div><ul id="megaUber" class="megaMenu"><li id="menu-item-65" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-0 ss-nav-menu-item-depth-0 ss-nav-menu-reg um-flyout-align-center"><a href="/"><span class="wpmega-link-title">Home</span></a></li><li id="menu-item-122" class="menu-item menu-item-type-custom menu-item-object-custom menu-item-has-children mega-with-sub ss-nav-menu-item-1 ss-nav-menu-item-depth-0 ss-nav-menu-reg um-flyout-align-center ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Our Organisation</span></span>
<ul class="sub-menu sub-menu-1">
<li id="menu-item-64" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-1"><a href="../about-us/"><span class="wpmega-link-title">About Us</span></a></li><li id="menu-item-54" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-1"><a href="../contact-us/"><span class="wpmega-link-title">Contact Us</span></a></li></ul>
</li><li id="menu-item-123" class="menu-item menu-item-type-custom menu-item-object-custom current-menu-ancestor menu-item-has-children mega-with-sub ss-nav-menu-item-2 ss-nav-menu-item-depth-0 ss-nav-menu-mega ss-nav-menu-mega-fullWidth ss-nav-menu-mega-alignCenter ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Advice and Guides</span></span>
<ul class="sub-menu sub-menu-1">
<li id="menu-item-461" class="menu-item menu-item-type-custom menu-item-object-custom current-menu-ancestor current-menu-parent menu-item-has-children ss-nav-menu-item-depth-1 ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Money</span></span>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-447" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../credit-cards/"><span class="wpmega-link-title">Credit Cards</span></a></li><li id="menu-item-448" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../debt-management/"><span class="wpmega-link-title">Debt Management</span></a></li><li id="menu-item-453" class="menu-item menu-item-type-post_type menu-item-object-page current-menu-item page_item page-item-168 current_page_item ss-nav-menu-item-depth-2"><a href="../investing/"><span class="wpmega-link-title">Investing</span></a></li><li id="menu-item-459" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../taxes/"><span class="wpmega-link-title">Taxes</span></a></li> </ul>
</li><li id="menu-item-463" class="menu-item menu-item-type-custom menu-item-object-custom menu-item-has-children ss-nav-menu-item-depth-1"><a href="../insurance/"><span class="wpmega-link-title">Insurance</span></a>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-446" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../car-insurance/"><span class="wpmega-link-title">Car Insurance</span></a></li><li id="menu-item-454" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../life-insurance/"><span class="wpmega-link-title">Life Insurance</span></a></li><li id="menu-item-451" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../home-insurance/"><span class="wpmega-link-title">Home Insurance</span></a></li><li id="menu-item-460" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../travel-insurance/"><span class="wpmega-link-title">Travel Insurance</span></a></li> </ul>
</li><li id="menu-item-462" class="menu-item menu-item-type-custom menu-item-object-custom menu-item-has-children ss-nav-menu-item-depth-1 ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Loans</span></span>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-455" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../loans/mortgages/"><span class="wpmega-link-title">Mortgages</span></a></li><li id="menu-item-768" class="menu-item menu-item-type-custom menu-item-object-custom ss-nav-menu-item-depth-2"><a href="../payday-loans-guide/"><span class="wpmega-link-title">Payday Loans</span></a></li><li id="menu-item-458" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../loans/student-loans/"><span class="wpmega-link-title">Student Loans</span></a></li> </ul>
</li><li id="menu-item-464" class="menu-item menu-item-type-custom menu-item-object-custom menu-item-has-children ss-nav-menu-item-depth-1 ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Other</span></span>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-449" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../fraud/"><span class="wpmega-link-title">Fraud</span></a></li><li id="menu-item-450" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../gambling/"><span class="wpmega-link-title">Gambling</span></a></li><li id="menu-item-457" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../retirement-planning/"><span class="wpmega-link-title">Retirement Planning</span></a></li> </ul>
</li></ul>
</li><li id="menu-item-203" class="menu-item menu-item-type-custom menu-item-object-custom menu-item-has-children mega-with-sub ss-nav-menu-item-3 ss-nav-menu-item-depth-0 ss-nav-menu-reg um-flyout-align-center ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Industry Insider</span></span>
<ul class="sub-menu sub-menu-1">
<li id="menu-item-57" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-1"><a href="../news/"><span class="wpmega-link-title">News and Reports</span></a></li><li id="menu-item-649" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-1"><a href="../share-your-story/"><span class="wpmega-link-title">Share Your Story</span></a></li><li id="menu-item-63" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-1"><a href="../blog/"><span class="wpmega-link-title">Blog</span></a></li></ul>
</li><li id="menu-item-465" class="menu-item menu-item-type-post_type menu-item-object-page menu-item-has-children mega-with-sub ss-nav-menu-item-4 ss-nav-menu-item-depth-0 ss-nav-menu-mega ss-nav-menu-mega-fullWidth ss-nav-menu-mega-alignCenter ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Tools & Calculators</span></span>
<ul class="sub-menu sub-menu-1">
<li id="menu-item-466" class="menu-item menu-item-type-post_type menu-item-object-page menu-item-has-children ss-nav-menu-item-depth-1 ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Credit Card Calculators</span></span>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-467" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../credit-cards/calculators/credit-card-repayment/"><span class="wpmega-link-title">Credit Card Repayment</span></a></li> </ul>
</li><li id="menu-item-468" class="menu-item menu-item-type-post_type menu-item-object-page menu-item-has-children ss-nav-menu-item-depth-1 ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Mortgage Calculators</span></span>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-469" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../loans/mortgages/calculators/mortgage-repayment/"><span class="wpmega-link-title">Mortgage Repayment</span></a></li> </ul>
</li><li id="menu-item-548" class="menu-item menu-item-type-post_type menu-item-object-page menu-item-has-children ss-nav-menu-item-depth-1 ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Debt Calculators</span></span>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-549" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../debt-management/calculators/debt-repayment/"><span class="wpmega-link-title">Debt Repayment</span></a></li> </ul>
</li><li id="menu-item-550" class="menu-item menu-item-type-post_type menu-item-object-page menu-item-has-children ss-nav-menu-item-depth-1 ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Payday Loan Calculators</span></span>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-551" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../loans/payday-loan/calculators/payday-loan-repayment/"><span class="wpmega-link-title">Payday Loan Repayment</span></a></li> </ul>
</li><li id="menu-item-567" class="menu-item menu-item-type-post_type menu-item-object-page menu-item-has-children ss-nav-menu-item-depth-1 ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Car Insurance Calculators</span></span>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-568" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../car-insurance/calculators/car-cost-calculator/"><span class="wpmega-link-title">Car Cost to Own Calculator</span></a></li> </ul>
</li><li id="menu-item-569" class="menu-item menu-item-type-post_type menu-item-object-page menu-item-has-children ss-nav-menu-item-depth-1 ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Investing Calculators</span></span>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-570" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../investing/calculators/regular-savings-calculator/"><span class="wpmega-link-title">Regular Savings Calculator</span></a></li> </ul>
</li><li id="menu-item-571" class="menu-item menu-item-type-post_type menu-item-object-page menu-item-has-children ss-nav-menu-item-depth-1 ss-nav-menu-nolink"><span class="um-anchoremulator" ><span class="wpmega-link-title">Student Loan Calculators</span></span>
<ul class="sub-menu sub-menu-2">
<li id="menu-item-572" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-2"><a href="../loans/student-loans/calculators/student-loan-repayment/"><span class="wpmega-link-title">Student Loan Repayment Calculator</span></a></li> </ul>
</li></ul>
</li><li id="menu-item-207" class="menu-item menu-item-type-custom menu-item-object-custom menu-item-has-children mega-with-sub ss-nav-menu-item-5 ss-nav-menu-item-depth-0 ss-nav-menu-reg um-flyout-align-center"><a href="#"><span class="wpmega-link-title">Other Resources</span></a>
<ul class="sub-menu sub-menu-1">
<li id="menu-item-59" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-1"><a href="../helpful-organisations/"><span class="wpmega-link-title">Helpful Organisations</span></a></li><li id="menu-item-200" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-1"><a href="../financial-glossary/"><span class="wpmega-link-title">Financial Glossary</span></a></li><li id="menu-item-694" class="menu-item menu-item-type-post_type menu-item-object-page ss-nav-menu-item-depth-1"><a href="../international-scholarship/"><span class="wpmega-link-title">International Scholarship Programme</span></a></li></ul>
</li></ul></div>
</nav>
<div style="clear:both;"></div>
<!-- /menu -->
<div class="columns">
<div class="frame cf">
<div class="path">
<span prefix="v: http://rdf.data-vocabulary.org/#">
<span typeof="v:Breadcrumb"><a href="/" rel="v:url" property="v:title">Home</a></span> > <span typeof="v:Breadcrumb"><span class="breadcrumb_last" property="v:title">Investing</span></span>
</span></div>
<section class="content content-left"><div class="wrapper">
<div class="page-section">
<h1 class="floatleft">Investing</h1>
<div style="clear: both;"></div>
<p><img class="alignleft wp-image-260" style="margin-top: 55px; margin-bottom: 23px;" alt="investing" src="../wp-content/uploads/2013/08/investing.png" width="135" height="104" /></p>
<p class="page-intro">Before formulating any investing strategies, you must properly prepare yourself. All investments carry varying degree of risk. It’s important that you take certain mandatory precautions before you expose your hard-earned savings to potential money pits.</p>
</div>
<div class="page-section" id="what-to-do-before-investing"><h2>What to do before investing</h2><p><img class="alignright size-full wp-image-420" style="padding: 4px; border: 1px solid #cccccc;" src="../wp-content/uploads/2013/08/investing1.png" alt="investing" width="300" height="199" />There are just too many unknowns to accurately predict whether someone will be a successful investor. With that said, there are certain steps that you can take to minimise your risks when investing for the first time.</p>
<ul class="checkmark">
<ul class="checkmark">
<li class="checkmark">
<p class="bold">Eliminate any outstanding debt</p>
</li>
</ul>
</ul>
<p>Being debt-free is of the utmost importance. On average, the interest payments on your debt are higher than the returns an ordinary investor can reasonably expect. As such, the return on your investments will likely be offset by any outstanding debt you may have. Similarly, if you invest while having debt, you run the risk of defaulting on your debt repayments, which can further exacerbate your debt problems.</p>
<ul class="checkmark">
<ul class="checkmark">
<li class="checkmark">
<p class="bold">Consolidate your savings</p>
</li>
</ul>
</ul>
<p>Do you have sufficient savings to fall back on? Before risking any of your hard-earned money, you need to make certain that you have a core of savings that will allow you to be financially afloat in the event your investment portfolio takes a large hit.</p>
<ul class="checkmark">
<ul class="checkmark">
<li class="checkmark">
<p class="bold">Plan for retirement</p>
</li>
</ul>
</ul>
<p>While investing can be used as one of the primary tools for building up funds for retirement, a sound investing strategy does not necessarily guarantee your future retirement security. Instead of solely relying on future investments to fund your retirement, it is vital that you start saving for your later years as early as possible. Refer to our <a href="../retirement-planning/">retirement planning guide</a> for more specific information.</p>
<ul class="checkmark">
<ul class="checkmark">
<li class="checkmark">
<p class="bold">Be comfortable with volatility</p>
</li>
</ul>
</ul>
<p>The stock market is heavily influenced by the whims of individuals and is constantly subject to their fleeting emotions. If you invest for a long enough period of time, your investments will invariably undergo price changes that materially affect the value of your portfolio. You must possess the mental discipline to act rationally while you are losing a lot of money, which is a lot harder than you may think. If you are unable to handle this, you will be better off allowing your money to be managed by a capable financial advisor.</p>
</div><div class="page-section" id="understanding-the-basic-asset-classes"><h2>Understanding the basic asset classes</h2><p>Investing in the market without properly understanding the basic asset classes can be likened to buying a car on a complete whim. Without understanding the differences between your options, especially their relative performance, how could you ever hope to be happy with your purchase?</p>
<div class="module"><div class="symple-toggle "><h3 class="symple-toggle-trigger">Cash</h3><div class="symple-toggle-container">Many risk-averse investors hold cash in savings accounts. Cash is considered the safest asset, but on average provides the lowest return over the long-run.</div></div> <div class="symple-toggle "><h3 class="symple-toggle-trigger">Bonds</h3><div class="symple-toggle-container">While it depends on the grade of the bond, bonds are considered marginally riskier investments than cash, but provide slightly higher returns.</div></div> <div class="symple-toggle "><h3 class="symple-toggle-trigger">Property</h3><div class="symple-toggle-container">Directly investing in real estate can involve substantial risk depending on the state of the economy. Generally, though, over long periods of time, property provides higher returns than cash or bonds.</div></div> <div class="symple-toggle "><h3 class="symple-toggle-trigger">Equities</h3><div class="symple-toggle-container">Historically, investing in stocks has yielded a greater return than property, but is more risky.</div></div> <div class="symple-toggle "><h3 class="symple-toggle-trigger">Commodities</h3><div class="symple-toggle-container">Commodities provide comparable returns to stocks, however, are generally the most volatile asset class.</div></div></div>
</div><div class="page-section" id="methods-of-diversification"><h2>Methods of diversification</h2><p>Once you understand the basic types of investments you can make, you must familiarise yourself with the term, ‘diversification.’ Diversification allows you to reduce your exposure to the inherent risks in the market, and can take on many forms.</p>
<ol class="numbers">
<li>
<p class="number-title">Asset Diversification</p>
<p class="body">Investing in asset classes, that are either unrelated or inversely related, allows you to spread the risk across your portfolio more effectively. Generally, when the overall value of equities fall, bonds begin to rise, and vice versa. For example, if half of your portfolio consisted of equities, and the other half bonds, and the stock market took a plunge, the increase in bonds may mitigate some your losses.</p>
</li>
<li>
<p class="number-title">Sector Diversification</p>
<p class="body">Holding equities in multiple sectors allows you to further reduce your portfolio’s exposure to risk. If you are heavily invested in one sector, and investors become bearish on that particular sector, you are likely to suffer large losses. However, if you spread your investments across unrelated sectors, you reduce the risk of one sector’s poor performance heavily affecting the overall value of your portfolio.</p>
</li>
<li>
<p class="number-title">Geographic Diversification</p>
<p class="body">While investing in foreign markets can allow you to reduce the impact of isolated stock market movements on your portfolio, you must take care to choose the foreign market wisely. If you invest in undeveloped markets, you may subject yourself to a degree of volatility that could outweigh the benefits of diversification.</p>
</li>
<li>
<p class="number-title">Portfolio Equity Diversification</p>
<p class="body">You should never invest a large portion of your portfolio in one company. Instead, you should diversify your portfolio across many companies, ideally in varied sectors. Less experienced investors may want to consider investing in mutual funds or ETFs, as they often contain built-in diversification.</p>
</li>
</ol>
</div><div class="page-section" id="additional-resources"><h2>Additional resources</h2><p>Once you understand the five asset classes, as well as the various diversification strategies, you are well on your way to begin planning your investment portfolio. While investing strategies and theories are outside the scope of this guide, you may find the following resources helpful in broadening your investing knowledge.</p>
<ol class="numbers-links">
<li>
<p class="number-title-links"><a href="http://www.ft.com/home/us">Financial Times</a></p>
<p class="body">The Financial Times is a British, international daily newspaper focusing on business and economic news. It is one of the largest publications in the world, by average daily circulation.</p>
</li>
<li>
<p class="number-title-links"><a href="http://www.investopedia.com/">Investopedia</a></p>
<p class="body">Investopedia is a free educational resource that contains guides and articles on nearly every investing topic one could imagine.</p>
</li>
<li>
<p class="number-title-links"><a href="http://www.fool.com/">The Motley Fool</a></p>
<p class="body">The Motley Fool is one of the largest, free educational resources for individual investors.</p>
</li>
<li>
<p class="number-title-links"><a href="http://stockcharts.com/">StockCharts.com</a></p>
<p class="body">StockCharts.com is one of the leading, subscription-based financial chart websites on the internet.</p>
</li>
<li>
<p class="number-title-links"><a href="http://bigcharts.marketwatch.com/">Big Charts</a></p>
<p class="body">Big Charts from MarketWatch provides a free, robust alternative for investors seeking to use financial charts.</p>
</li>
<li>
<p class="number-title-links"><a href="http://www.marketwatch.com/">MarketWatch</a></p>
<p class="body">MarketWatch is one of the leading investor portals on the internet. It provides news, market data, portfolios, mutual funds, personal finance, discussions, and much more.</p>
</li>
</ol>
<p>If you are interested in investing literature, Forbes has compiled a list of many seminal books on investing, which can be read <a href="http://www.forbes.com/2008/01/28/graham-buffett-crescenzi-pf-edu-in_jd_0128soapbox_inl.html">here</a>.</p>
</div>
<!-- /frame -->
<!-- /content -->
</div></section>
<!-- /content -->
<aside class="sidebar sidebar-right sticky">
<div class="on-this-page">
<h4>ON THIS PAGE</h4>
<div class="page-menu">
<ul>
<li class="list-arrow"><a href="#what-to-do-before-investing">What to do before investing</a></li><li class="list-arrow"><a href="#understanding-the-basic-asset-classes">Understanding the basic asset classes</a></li><li class="list-arrow"><a href="#methods-of-diversification">Methods of diversification</a></li><li class="list-arrow"><a href="#additional-resources">Additional resources</a></li>
</ul>
</div>
<!-- /page-menu -->
</div>
<!-- /on-this-page -->
<div class="widgets">
<div id="text-16" class="widget-1 widget-first widget-odd sidebar-green widget widget_text"><h4>Related Articles</h4> <div class="textwidget">
<!-- Page-list plugin v.4.2 wordpress.org/plugins/page-list/ -->
<ul class="page-list ">
<li class="page_item page-item-485"><a href="../investing/guides/finding-financial-adviser/">Finding a financial adviser</a></li>
<li class="page_item page-item-594"><a href="../investing/guides/fixed-rate-bond-suitable-investment/">Is a fixed rate bond a suitable investment?</a></li>
<li class="page_item page-item-595"><a href="../investing/guides/tax-forms-every-investor-must-understand/">Tax forms every investor must understand</a></li>
</ul></div>
</div><div id="text-32" class="widget-2 widget-last widget-even sidebar-red widget widget_text"><h4>Calculators</h4> <div class="textwidget">
<!-- Page-list plugin v.4.2 wordpress.org/plugins/page-list/ -->
<ul class="page-list ">
<li class="page_item page-item-563"><a href="../investing/calculators/regular-savings-calculator/">Regular savings calculator</a></li>
</ul></div>
</div> </div>
<!-- /widgets -->
<div class="share-this-page">
<h4>SHARE THIS PAGE</h4>
<div class="addthis_toolbox addthis_default_style">
<div class="zilla-share"><a href="https://twitter.com/share" class="twitter-share-button" data-via="Answerbag" data-count="horizontal">Tweet</a><div class="fb-like" data-send="false" data-show-faces="false" data-layout="button_count"></div><div class="g-plusone" data-size="medium"></div></div>
</div>
</div>
</aside>
<!-- /sidebar -->
</div>
<!-- /frame -->
</div>
<!-- /columns -->
<div class="push"></div>
<!-- /page-wrapper -->
<footer>
<div class="footer-columns">
<div class="footer-left">
<ul>
<li id="footer-link1"><a href="../about-us/">About us</a></li>
<li id="footer-link2"><a href="../contact-us/">Contact us</a></li>
<li id="footer-link3"><a href="../news-and-reports/">News</a></li>
<li id="footer-link4"><a href="../terms-and-conditions/">Terms & conditions</a></li>
<li id="footer-link5" class="last"><a href="../privacy-policy/">Privacy & cookies</a></li>
</ul>
</div>
<div class="footer-right"><small>© Answer Bag 2019. Answer Bank: St Mary's Parsonage, Manchester M3 2WJ Tel: <a href="tel:0161 832 69444">0161 832 69444</a></small></div>
</div>
<!-- /footer-columns -->
<!-- /frame -->
</footer>
</div>
</div>
<a id="toTop" title="Return to Top ▲" class="totop-br totop-custom" rel=""><img src="../wp-content/themes/consumer/i/icon_top.png" alt="Return to Top ▲" title="Return to Top ▲" width="40" height="40" /><span>Return to Top ▲</span></a> <script type="text/javascript">function showhide_toggle(a,b,c,d){var e=jQuery("#"+a+"-link-"+b),f=jQuery("#"+a+"-content-"+b);a=jQuery("#"+a+"-toggle-"+b);e.toggleClass("sh-show sh-hide");f.toggleClass("sh-show sh-hide").toggle();a.text()===c?a.text(d):a.text(c)};</script>
<!-- Zilla Share Scripts -->
<script>!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0];if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src="//platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs");</script><div id="fb-root"></div><script>(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src = "//connect.facebook.net/en_GB/all.js#xfbml=1";
fjs.parentNode.insertBefore(js, fjs);
}(document, "script", "facebook-jssdk"));</script><script type="text/javascript">
(function() {
var po = document.createElement("script"); po.type = "text/javascript"; po.async = true;
po.src = "https://apis.google.com/js/plusone.js";
var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(po, s);
})();
</script><script type="text/javascript">if (typeof(addthis_share) == "undefined"){ addthis_share = {"url_transforms":{"shorten":{"twitter":"bitly"}},"shorteners":{"bitly":""}};}
var addthis_options = "facebook_like,twitthis,google_plusone";
var addthis_config = {"data_track_clickback":false,"data_track_addressbar":false,"data_track_textcopy":false,"ui_atversion":"300"};
var addthis_product = 'wpp';
</script><script type="text/javascript" src="../js/addthis_widget.js"></script><script type='text/javascript'>
/* <![CDATA[ */
var uberMenuSettings = {"speed":"300","trigger":"hover","orientation":"horizontal","transition":"slide","hoverInterval":"20","hoverTimeout":"400","removeConflicts":"on","autoAlign":"off","noconflict":"off","fullWidthSubs":"off","androidClick":"off","iOScloseButton":"on","loadGoogleMaps":"off","repositionOnLoad":"off"};
/* ]]> */
</script>
<script type='text/javascript' src='../wp-content/plugins/ubermenu/core/js/ubermenu.min.js'></script>
<script type='text/javascript' src='../wp-content/plugins/social-sharing-toolkit/includes/buttons/button.facebook.js'></script>
<script type='text/javascript' src='../js/all.js'></script>
<script type='text/javascript' src='../js/widgets.js'></script>
<script type='text/javascript' src='../wp-content/plugins/social-sharing-toolkit/includes/buttons/button.googleplus.js'></script>
<script type='text/javascript' src='../js/in.js'></script>
<script type='text/javascript' src='../js/pinit.js'></script>
<script type='text/javascript' src='../wp-content/plugins/symple-shortcodes/includes/js/symple_toggle.js'></script>
<!--wp_footer-->
<script type="text/javascript" src="../wp-content/themes/consumer/includes/init.js"></script>
<script>
(function(i,s,o,g,r,a,m){i['GoogleAnalyticsObject']=r;i[r]=i[r]||function(){
(i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o),
m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m)
})(window,document,'script','//www.google-analytics.com/analytics.js','ga');
ga('create', 'UA-87138559-1, 'answerbag.co.uk');
ga('send', 'pageview');
</script>
<script>
(function(i,s,o,g,r,a,m){i['GoogleAnalyticsObject']=r;i[r]=i[r]||function(){
(i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o),
m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m)
})(window,document,'script','https://www.google-analytics.com/analytics.js','ga');
ga('create', 'UA-87138559-1', 'auto');
ga('send', 'pageview');
</script></body>
</html>