Successful investment no longer requires a huge fortune, a high level of expert financial knowledge or having the right contacts. Investing is now something that the ordinary person in the street can do with some spare money and knowledge of how to go about it. You certainly do not need a PhD in math to put your money to work, however, it is important to thoroughly research any investment you make before committing any money.
More and more people are choosing to invest money in sectors like stocks, currency, fine wine and classic cars because properly planned and managed investing gives a much better return than money left sitting in the bank. Most bank savings accounts now offer low annual returns of around 2%, where savvy investments can bring you considerably more than that. Over the longer term, careful investment allows you to build up a greater amount of personal wealth to enjoy life in your retirement years.
Portfolio management is key
Effective portfolio management has a number of benefits as shown below.
Helps to track progress
Of course, the first obvious benefit is that you will have knowledge of how your investments are performing. Simply investing money and then forgetting to review it regularly is not a recipe for success. Proper management of your portfolio will help to see if it is on track to make the expected returns by the time your investment period ends.
Helps to identify problems
The flip-side of tracking if your investments are on the way to producing the returns you expect is identifying if they are not. Proper portfolio management will do that and give you advance warning of any problems that are likely to crop up. It will also give you the hard evidence needed to take decisive action before you lose too much money. If for example, you notice one investment has been under-performing for a while, you may choose to sell it and re-invest the money elsewhere.
Gives you the chance to spot new opportunities
Another big advantage with properly looking after your investments is that you will come across potentially lucrative new investments to consider. You may for example be checking on the share price of a company you have put money into, only to see another company that is worth investing in, or spot that the whole sector itself is booming. It is just these kinds of new opportunities that proper management of your investments can offer.
Although you will be investing to make money, it should also be something to enjoy. By keeping a proper eye on how your investments are performing, you will be able to do so. Having the knowledge of exactly what is going on and then taking any action needed will keep you feeling much calmer and less stressed. Knowledge is power and regular portfolio checks will allow you to sleep soundly at night.
It will build up your investing knowledge
We all know that the more you do something, the better at it you become. That is true for investing where properly managing your portfolio will naturally boost your investment skills. You will find it easier to read charts, spot trends and get a feel for how the markets work. This will all make it easier to spot new investment opportunities while also giving you a firmer investing foundation to fall back on.
Consider using a wealth management firm to help
While the above tips are effective and useful, some people simply do not want to look after their own investments. It may be you do not have the time, are not confident enough in your knowledge or prefer to get an objective view on things. In this case, an external wealth management firm is your best bet.
US based Creative Planning show just why this is the case. They are led by successful entrepreneur Peter Mallouk who was on Worth’s List of the ‘100 Most Powerful Men and Women in Global Finance’ in 2017. Mallouk is an expert in wealth management and managing investment portfolios and has built up Creative Planning to reflect this. This kind of firm is ideal if you do not want to manage your own investments and would like qualified professionals to do so on your behalf.
Make sure you look after your investments
As the above article shows, it really is crucial to look after your investments. It will not only help you to sleep better at night but will also ensure they are on track to make you money as planned. Whether you go with a professional wealth management firm or do it yourself, the key is to make sure it happens.