If you invest in a Buy to Let property and want to release equity from your portfolio, it might be possible to consider an Equity Loan. Potentially, you could release equity to invest in more property without the need to maintain monthly payments to the lender. Instead, interest could be rolled up in to the capital you owe and repaid at the end of the term. These types of loans are highly specialist and not right for everyone so it is vital you seek expert advice from a suitably qualified mortgage broker.
Develop a Diversified Asset Allocation Strategy
When selecting stocks to invest in, you should carefully consider the risks of stock investing and develop a diversified asset allocation strategy that fits with your goals, investing time frame, and risk tolerance.
- Invest in approximately 20 to 30 stocks in at least six to eight sectors with different investment characteristics.
- No more than 20% of the total value of your stock portfolio should be in any one sector.
- No more than 10% of the total value of your stock portfolio should be in any one stock.
- You should invest a minimum of approximately 3% to 4% of the total value of your stock portfolio in each stock.
Deciding which stocks to invest in can be difficult, especially if you have a low tolerance for risk. That’s why it’s important to define one’s financial goals and how much risk can be tolerated. Research stocks that fit within your strategy and invest in stocks that have the potential to help you meet your specific goals, whether you want investment growth, income, or a combination of the two.
Your Financial Advisor can provide you with a wide range of stock investing services, including:
- Asset allocation strategy development
- Individual stock selection
- Help in deciding when to buy and sell your stocks