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Amid all the noise and information on building wealth... here are some practical insights into successful investing. * Employ experts, save time, money and worry. * Time is on your side, if you start now. *Re-invest your interest and dividend income. Let compounding growth work for you. *Invest in assets which generate some form of income, such as shares, property, cash and fixed interest. Don't invest in assets which don't generate income, such as personalised number plates and art. *Diversify your investments across asset classes, industries, fund managers and countries. Spread investments to protect your portfolio. *Returns achieved in the past by an investment can only ever be a guide for the future. * It's all about income. How much is your investment really worth? *The higher the return on an investment, the greater the risk. * Seek advice. You can't be seriously good at everything * Find hidden value in investments undiscovered by the market . * Understand risk, make risk work for you. *Ignore volatility over the short term. For example, shares will move up and down every day. Ignore these movements; you're only concerned with the long-term trend. *Drip-feed your savings into an investment. Make your money work as hard and as quickly for you as possible. Take advantage of cost averaging. * Avoid chasing returns. Stick to your game plan to achieve success. *Understand the tax implications of investments, but don't let tax concerns drive your investment decisions. Governments close loopholes as quickly as we find them. *Be patient; successful investing is a long-term venture. |
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