3. Be Tax Efficient from the Start
When it comes to investing, you will likely start off with a relatively small pot and might think tax efficiency is not a major concern. Remember, investing is a long term strategy and you need to consider the potential value of your investments in the future. Consider you’re investing now for your retirement, by the time you reach retirement age you may have acquired a considerable pot. If you haven’t invested in a tax efficient environment like a pension then you may end up paying a considerable amount of tax. Insure you are aware of this when you open an account.
4. Diversify
As different markets rise and fall, a diversified portfolio of different types of investment funds can help to stablilise your portfolio over an economic cycle. Investing exclusively in particular markets, sectors or companies can leave you exposed to unforeseen issues occurring in one particular area. Investing across a range of asset classes, regions and sectors helps to mitigate potential loses and maximise long-term returns.