Is now the time to invest?

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Is now the time to invest?

by RMI Independent Financial Advice Category: News

Global stock markets have suffered due to the impact of the coronavirus pandemic, and you may have heard suggestions that now is the ‘perfect time to buy’. After all, in an ideal world, you want to buy when stock prices are low and sell at a high. However, it’s not as straightforward as that and there’s no ‘perfect’ time that suits everyone.

No one knows what is around the corner. Even professional investors are unlikely to have considered the impact a pandemic would have when making decisions in 2019. So, it’s impossible to know what’s coming in the coming weeks and months. Whilst some commentators argue an economic crash is coming, others state the UK economy will begin to pick up once the lockdown measures are lifted.

Whilst it can be tempting to act on these comments when it comes to investing, market dips shouldn’t be at the centre of your decisions. The volatility and numerous factors that have an influence mean it can lead to decisions that may not be best for you.

So, when is the right time to invest? That depends on your personal circumstances and goals. These should always be at the centre of your investment plans and influence when to increase your portfolio.

5 factors influencing the ‘right’ time to invest for you

1. Investment goals

What do you hope to achieve when investing? We all want returns when we invest money but it’s important to think about what you intend to use those gains for. Your aspirations should be at the heart of all financial decisions, including investment ones. Investment goals will influence the risk profile and time frame of investments too.

2. Time frame

How long money will remain invested is crucial to set out investment plans. You may be certain that stock markets have hit a low and will rise over the coming months, but if your investment time frame is just a couple of years, you probably shouldn’t invest. This is because investment markets experience volatility and investing with a short-term perspective may not give you enough time for the peaks and troughs to smooth out. As a result, the time frame should dictate whether investing at all is right for your plans and how much risk to take if you do. Generally speaking, you shouldn’t invest with a time frame of fewer than five years in mind.

3. Existing assets

What other investment products and assets do you hold? If a large portion of your assets is already held in stocks and shares, it may not be prudent to invest further. An investment portfolio should be well-balanced and diversified across a wide range of products, this can help reduce short-term volatility experienced and manage risk. Your asset allocation needs to be carefully considered when asking if now is the right time to invest, pouring more money into the stock markets can significantly change your exposure to risk and volatility.

4. Risk profile

There’s no one-size-fits-all solution when it comes to investing. One of the areas that should be tailored to you is the amount of risk you take. All investments involve some level of risk, but this varies significantly between investment options. There are numerous factors to consider when choosing a risk profile that matches you, from the investment time frame and overall financial situation to your attitude to risk. Investing in stocks simply because some sources claim it’s the ‘perfect’ time could mean making decisions that don’t consider your risk profile.

5. Wider financial plans

Investing isn’t something that should be looked at alone either, your overall plans and aspirations need to be factored in too. Would it make more sense for you to pay off your mortgage or invest? Do you need to build up a financial safety net before increasing investments? Or would it make sense to contribute further to your pension if investment goals are tied to retirement? Looking at the bigger picture can help you create a financial plan that provides a blueprint for your aspirations.

Amid the market uncertainty, it’s natural to have questions about your investments. Please don’t hesitate to contact us if you’d like to discuss any aspect of your investment portfolio and plans.

Please note: The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

What our clients say

I was recommended Paul and Bryony as financial advisers by a friend. My husband and I were particularly interested to think about where to invest our savings. They have helped us to think about what level of risk we are prepared to engage with and explained the different possibilities very clearly and thoroughly, enabling us to maximise the potential of our investments. They also provide regular updates. We have been very pleased with their service and have already recommended them to others.

Dr C Oliver

London

I have been a client of RMI since their foundation. Prior to that, I dealt with the directors for my own personal pension and our business pensions. This relationship as existed for the last 25 years. During this time, I have received first-class support and advice. I have always been kept informed on financial trends and opportunities. To this end I was able to plan retirement early if I wished. More importantly, I was able to choose the right opportunity as when to retire. Since retiring, I continue to receive the highest service and advice on fund management.

Mr. M Moore

Ex General Manager

Leicester

We have dealt with Paul and his staff for over 20 years and have received a first-class service that is completely to our entire satisfaction. We would have no hesitation in recommending the company to anyone who is seeking financial advice.

Mr J Channing

Ex Non-Executive Director, Earl Shilton Building Society

Leicestershire

It’s a great comfort to have Paul Eason and his team on call if I have any queries or concerns about my finances.

Ms M Topham

Oxford

Paul Eason and Bryony Evans have competently managed our investments for the past twelve years. Their service has been managed diligently; they have provided consistency of advice for positive results. This has given us satisfaction and confidence in their ability to handle our personal affairs. Their research and advice are in-depth, concise and clear. They have demonstrated a thoroughness in all aspects of our personal financial planning.

Mr & Mrs S Price

Devon

Following a personal recommendation from a colleague some two years ago, Bryony and Paul provided advice to my wife and myself on planning for my forthcoming retirement. Latterly they have helped another family member on how best to invest a lump sum inheritance. On both occasions, they have guided us through the various options available, indicating the pros and cons in an easily understandable way. They continue to provide regular updates on how the investment is performing. We have always found them to be attentive, knowledgeable and a pleasure to deal with. We would have no hesitation in recommending them to a friend seeking an adviser.

Mr & Mrs P Teasdale

Rutland

When you are investing, you need confidence to make decisive commitments. Paul Eason and Bryony Evans at RMI are true professionals that you can trust implicitly for commercial and personal advice and transactions.

Mr D Matthews

Chairman, Cellular Mouldings Ltd

Northants

RMI not only deal with all our company's employee benefits schemes, but also provide invaluable support for us on a personal level. Nothing is too much trouble and we have found their service to be effective, efficient and friendly. We would recommend RMI to any company or private individual looking for a comprehensive and personal service.

Mr & Mrs I Bates

Ex Directors of The Bright Consultancy Ltd

Bournemouth

Paul and Bryony have advised us for over ten years. They bring strong market knowledge and analysis to provide balanced views for investment decision making. This is then backed up by thorough administration - all delivered in a professional and easy-going manner.

Mr & Mrs I Morton

Concept Shape Ltd

Cheshire

RMI Independent Financial Advisers have been assisting our clients with knowledge and insight into the world of pensions and protection for over 10 years. They have helped many of our company and personal clients navigate their options and meet the legislative duties around pensions and auto-enrolment in the most efficient way, whilst giving them the confidence to plan effectively for their future. We have no hesitation whatsoever in recommending their services to not only our clients, but to other professional connections.

Sunflower Accounts Ltd

Accountants

Wiltshire

Paul has been a trusted adviser to our business for over 20 years and he and Bryony continue to support us with our company pension scheme whilst providing first class financial advice. We would highly recommend RMI for anyone seeking a quality financial advisory service.

Mr J Turner

Managing Director, LINAK UK Ltd

Birmingham

I was looking at my potential retirement options and RMI were able to come up with a bespoke pension solution that enabled me to retire earlier than I had expected.

B Kilfeather

Not knowing how to plan for the future, I required advise about pensions and insurance policies and Paul has helped by being constantly available, calm and pragmatic.

Dr R Singh

Director

Paul was recommended to me by one of his clients and I was looking for a financial adviser who could help with a pension scheme for my employees and also for my personal plan.

Paul helped all the members of my team. He had time and patience and everyone individually with their various circumstances. He was also very helpful with my personal pension during the time I have my business. My personal circumstances have now changed and Paul’s advice has been invaluable.

D Harrison

Business Owner

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