{"id":7906,"date":"2023-03-20T12:04:28","date_gmt":"2023-03-20T01:34:28","guid":{"rendered":"https:\/\/adelaideprivatewealth.com.au\/four-powerful-ways-to-build-investing-confidence\/"},"modified":"2023-03-20T12:04:28","modified_gmt":"2023-03-20T01:34:28","slug":"four-powerful-ways-to-build-investing-confidence","status":"publish","type":"post","link":"https:\/\/adelaideprivatewealth.com.au\/four-powerful-ways-to-build-investing-confidence\/","title":{"rendered":"Four powerful ways to build investing confidence"},"content":{"rendered":"
Here are some tips that can help you build confidence in your investing approach, no matter what the markets are doing.<\/strong><\/p>\n Emotions always play a role in investing. For some investors, especially newer ones, it can be hard to separate the idea of investing from \u201closing it all.\u201d If you\u2019re anxious or insecure about your investing plan, you could make heat-of-the-moment decisions during market downturns that might not be best for your long-term goals. That\u2019s why it\u2019s important to acknowledge those nerves early and make sure your emotions are working for you when you invest, not against you. Here are some tips that can help you build confidence in your investing approach, no matter what the markets are doing.<\/p>\n Say you have a large lump sum of money to invest. Maybe it was an inheritance or a gift. If you\u2019re very risk averse, one of the first thoughts you might have is \u201cwhat if I invest all this money at once, and the market drops right after?\u201d If that sounds like you, dollar-cost averaging might bring you some peace of mind.<\/p>\n Dollar-cost averaging means buying a fixed dollar amount of a particular investment on a regular schedule, no matter what its share price is at each interval. Since you\u2019re investing the same amount each time, you automatically end up buying more shares when prices are low and fewer shares when prices rise. This can help you avoid that potential buyer\u2019s remorse of investing a lump-sum amount when prices are at their peak. Incremental investing is one way to help you get comfortable with the market\u2019s natural movement, and it can be especially helpful for self-identified worriers.<\/p>\n Some investors worry they\u2019re not saving enough to reach their long-term goals\u2014or that they\u2019re not doing enough to keep their financial lives on track. You can take some of that uncertainty out of the equation by setting your savings on autopilot. Put a percentage of each paycheck or your annual salary into your investment accounts. You\u2019ll be taking positive action to stay on track\u2014and that\u2019s a great feeling!<\/p>\n Diversifying your portfolio is one way to help control risk. It\u2019s a fancy way to describe putting your eggs in many baskets\u2014or in this case, putting your money into high-, moderate-, and low-risk investments, both domestic and international. Your portfolio will still have the growth potential that comes from higher-risk shares, but you won\u2019t be as vulnerable during market downturns because you\u2019ll ideally also hold safer investments like bonds and cash. The breakdown of shares, bonds, and cash in your portfolio determines how much risk you take on when you invest, and you have the freedom and flexibility to choose a mix that feels right for your life.<\/p>\n Successful investing isn\u2019t about reacting to today\u2019s news or to the latest trends bubbling up on social media. It\u2019s about letting your long-term goals guide your financial choices. That\u2019s what inspired you to invest in the first place! You might be tempted to pull your money out of the market during periods of volatility. But if you do that and reinvest when the markets calm down, you could end up farther away from your goal. Why? Because your investments lose the power of compounding. And while a measured, disciplined investing approach isn\u2019t always easy, it can be worth it in the end.<\/p>\n Remember: Strong financial plans are built with market volatility in mind. If you diversify your holdings, invest regularly, and stay focused on your big-picture goals, you can feel confident that you\u2019re doing your part to set your portfolio up for success\u2014and set yourself up for ongoing financial wellness.<\/p>\n Call us today on [phone] to discuss your investment strategy, we\u2019re here to help.<\/p>\n Source: Vanguard<\/a><\/span><\/p>\n Reproduced with permission of Vanguard Investments Australia Ltd<\/p>\n Vanguard Investments Australia Ltd (ABN 72 072 881 086 \/ AFS Licence 227263) is the product issuer. We have not taken yours and your clients\u2019 circumstances into account when preparing this material so it may not be applicable to the particular situation you are considering. You should consider your circumstances and our Product Disclosure Statement (PDS) or Prospectus before making any investment decision. You can access our\u00a0PDS\u00a0or\u00a0Prospectus\u00a0online or by calling us. This material was prepared in good faith and we accept no liability for any errors or omissions. Past performance is not an indication of future performance.<\/p>\n \u00a9 2022 Vanguard Investments Australia Ltd. All rights reserved.<\/p>\n Important: The post Four powerful ways to build investing confidence<\/a> appeared first on MLC Contemporary<\/a>.<\/p>\n<\/div>\n<\/p>\n
Consider dollar-cost averaging<\/strong><\/h3>\n
Make saving automatic<\/strong><\/h3>\n
Diversify your investments<\/strong><\/h3>\n
Think long term<\/strong><\/h3>\n
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