This does not constitute advice. Professional advice should be taken prior to acting on any part of it.
Dental and Medical Financial Services Limited is an appointed representative of Best Practice IFA Group Limited, which is authorised and regulated by the Financial Conduct Authority.
When you start investing, you need to know what you ultimately want from it. What are your needs? Your financial and lifestyle goals? What about your appetite for risk? Investing in the stock market can be a bit of a roller coaster, so you need to be prepared to deal with the ups and downs.
Having a well-managed, diversified portfolio is what you should focus on to help build your wealth and help you keep the value of your money ahead of rising prices.
Why are you investing?
The first thing to consider is your reason for investing. As a doctor or other medical professional, you might have some specific personal goals, but equally you’ll likely have the same things on your mind as other people, like retirement, to financially support higher education for family members, a wedding, or perhaps just a big holiday. What your reason is will help you determine your investment goals and impact how you manage your investments in the future.
Choose your investing timeframe
For specific savings goals, the timeframe will help you decide what your strategy will be. Where you are in your medical career will help you determine the timescales you want to focus on.
With short-term investments, you’ll need at least a five-year commitment. If you don’t want to invest for that long, there are other options, like cash savings.
Medium-term investments require you to commit your money for at least five years. Your investments make up your ‘portfolio’ and in general, you should strive to have a mix of funds investing in shares, bonds, and other assets, or a mixture of them all.
Long-term investments really need some patience. Depending on when you start investing, you could be looking at 30 plus years before you’ll ever be able to access your money. Since you have time on your side, you can take some more risks and potentially get some big returns. But when you get closer to retirement, you might want to choose safer options to protect your investments.
Build your investment plan
Once you’ve determined your financial and lifestyle goals, you’ll be able to start building your investment portfolio. It can be hard to figure out exactly which options are right for you, so don’t hesitate to work with a professional to find what’s right for you.
Create a diversified portfolio
Building a balanced, diversified portfolio will help protect your investments from the volatility of the markets. Different types of investments perform well under different economic conditions. So, by diversifying your portfolio, you’re ensuring that no matter what the economy looks like, your investments will still perform. A diversified portfolio should include a wide mix of investment types, markets, and industries.
Review your portfolio regularly
Whenever a major life event occurs that could potentially impact your financial situation, it’s a good idea to sit down and review your investment portfolio. Even if things are going smoothly, you should still be regularly reviewing your financial plan. You might need to adjust a few things here or there and periodically determine if your goals and strategy are still aligned.
That’s where Dental & Medical Financial Services comes in. We work with medical professionals like you to ensure your investments will help create the future you want. We listen to you and build our financial plan and portfolio around your goals. So, if you’re ready to start building your wealth, get in touch with us today.