As we know from the tale of ‘The Tortoise and the Hare’, the tortoise wins the race because of his slow and steady attitude, his determination, and his consistency. He was not overly confident and easily distracted like the Hare was.

It is easy to get distracted by the latest ‘make money fast’ fads. We chase the promise of high returns but often don’t think about the risk.

Whilst it is common to allocate about 10-15% of your portfolio to high-risk alternatives such as crypto, day trading and gold etc., the remaining 85-90% are usually long-term investments that will keep you on your path to financial freedom in retirement. Financial planning is a marathon and not a sprint. Slow and Steady. Patience is key. 

“Buying a basket of stocks — and then holding onto it even when the market drops — always wins out in the long run… most worthwhile investments don’t pan out in the short-term. Rather, they keep growing at a steady rate over years, decades, or even a lifetime.” *

Always chat to your financial adviser to get a good financial plan in place to ensure your financial freedom. Compound interest over time is what builds your wealth for retirement. Latest fads could get you higher returns and supplement your portfolio, but they are riskier.

Below are a few steps to consider before jumping on the latest fad wagon.

• Do your homework – make sure you know everything about the latest trend before investing. Research the best investing options available.
• Know the risks – ensure you are aware of the level of risk.
• Know your investment time frame and invest accordingly – certain funds and stocks are meant for long-term investing as time will even out the fluctuations. Short term stocks and funds require constant monitoring to get the best returns.
• Training – get properly trained so you know how the markets work and when to buy or sell when trading stocks or crypto currencies.
• Consider using apps that do the hard work for you like deVere Crypto or Catalyst.
• Get your adviser to open a trading account for you if you wish to trade in stocks.

Stay focused and do not get distracted by all the new fads in finance. Your adviser will keep you focused, keep you on track, and make allowances for the latest fads to be incorporated into your portfolio. [email protected]

At the end of the day, a diversified portfolio is the one that will mitigate risk and get you to your end goals.
* www.forbes.com

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.