Investments are critical
to the lifestyles and wellbeing of most of us, yet too often we are content
to put ourselves at the mercy of others when investing money we have spent
many years accumulating. One of the reasons for this is that the financial
services industry has sown confusion with a vast array of investment products
that are frequently sold indiscriminately.
Bruce Cameron,
the editor of Personal Finance, leads you through the maze with
22 safe steps to wealth.
One step at a
time
1. Prepare
for a marathon
2. Get your mind right
3. Get good advice
4. Get rid of debt
5. Decide whether you need capital
growth or income or both
6. Select an asset class
7. Understand the risks
8. Know your risk profile
9. Diversify your investments
10. Understand market sectors
11. Find your investment style
12. Consider liquidity
13. Consider guarantees
14. Consider costs
15. Consider tax
16. Choose your investment product
17. Choose a product provider
18. Measure the results
19. Rebalance your portfolio
20. Revisit your investment strategy
21. Reinvest mature investments
22. Start all over again
Note:
This feature was first published in Volume 13 (4th Quarter 2002) of Personal
Finance magazine.
