Insights

Investing for your journey

By
Adrian Howard
on
August 20, 2020

Learn these basic investing principles to help turn your goals into reality.

Investing for your journey

Learn these basic investing principles to help turn your goals into reality.

The journey to achieve your goals isn’t always easy. Unexpected events can take us by surprise, while uncertain periods can cast shadows over our financial outlook.

The coronavirus pandemic has shown just some of the challenges that we can face in our lifetimes, including concerns for our health, job security and economic prosperity.

During these uncertain times, it’s helpful to be reminded of some basic investment principles that give us the best chance of achieving our personal goals.

This video looks at some of the principles that can be applied throughout your financial journey.

Start early

Investing at the earliest opportunity gives us the best chance of achieving our goals. Buying a first home or paying for further education or training can be made more attainable by starting early.

Investing for children is a great example of where starting early doesn’t have to break the bank and could make a huge difference to their futures.

Compound growth

Long-term investors benefit from compound interest. Compound interest essentially means that your investment returns themselves generate further returns. Over time, your gains will increase exponentially, reiterating that the earlier you start investing, the easier the journey.

Time in the market

Investing carries risk. Periods of economic and political uncertainty heighten volatility in the market, which can see the value of your investments fluctuate. During these market downturns we often think they will never recover. But over time, markets tend to regain their losses and, over the long-term, can generate significant returns. Which is why giving yourself time in the market is the best way to achieve your financial goals.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select, and the value can therefore go down as well as up. You may get back less than you invested.