Investment Planning by Tradenomic Financial

INVESTMENT PLANNING

TIPS FOR BUILDING A DIVERSIFIED PORTFOLIO

Discover why diversification is a powerful tool

UNDERSTAND INVESTMENT OPTIONS

Read about the diverse range of investment options

THE IMPORTANCE OF INVESTING

Let's explore the significance of investing

BUILDING WEALTH WITH TRADENOMIC FINANCIAL

Welcome to our informative magazine, where we dive deeper into investment planning to empower you with financial knowledge. At Tradenomic Financial, our boutique firm thrives on expert guidance complemented by cutting-edge technology.

THE IMPORTANCE OF INVESTING: BUILDING WEALTH AND SECURING YOUR FUTURE

Investing plays a vital role in achieving financial growth and security Let's explore the significance of investing:

Wealth Accumulation: According to the Office for National Statistics, the average weekly household expenditure in the UK was £638.90 in 2020. Despite this, the median total financial wealth (excluding property) of UK households was only £21,120 in 2018-2019 Investing can bridge this gap by offering the potential for higher returns and wealth accumulation over time.

"An investment in knowledge pays the best interest." - Benjamin Franklin

Beat Inflation: Inflation erodes the purchasing power of money. Central Bankers aim to maintain the UK's inflation rate at around 2%. If your money isn't growing at least at the rate of inflation, it effectively loses value Investing in assets with higher returns can help preserve and grow the value of your money, ensuring your wealth keeps pace with or outpaces inflation.

Retirement Planning: The UK's population is aging and people are living longer According to the Office for National Statistics, the number of people aged 65 years and over is projected to reach 14 1 million by 2031 To secure a comfortable retirement, it is essential to invest early and consistently, allowing your investments to compound over time.

Home-ownership and Property Investment: Owning a home is a significant financial goal for many individuals According to the UK House Price Index, the average property price in the UK increased by 10.2% from July 2020 to July 2021. Investing in property can provide not only a place to live but also potential rental income and capital appreciation Tax Efficiency: Certain investment vehicles, such as Individual Savings Accounts (ISAs) and Pensions, offer tax advantages in the UK. This can be regarded as an additional boost to your overall wealth if done correctly.

Financial Independence: Investing can help you achieve financial independence, allowing you to reach a point where your investments generate enough passive income to cover your expenses. This level of financial freedom provides greater flexibility in life choices and reduces financial stress

Compounding Effect: The power of compounding allows your investments to grow exponentially over time

According to the Barclays Equity Gilt Study, the average annual return of the UK stock market was around 5.9% (adjusted for inflation) from 1899 to 2020. By reinvesting earnings and letting your investments compound, your wealth can grow significantly over the long term.

UNDERSTANDING INVESTMENT OPTIONS:

1. Equities:

Investing in equities means buying shares or ownership stakes in publicly traded companies. When you own an equity, you become a partial owner of that company. Equities have the potential for significant growth and can provide attractive returns, especially over the long term However, they can also be volatile, meaning their prices can fluctuate widely in the short term due to various factors such as economic conditions, industry trends, or company performance.

We help you navigate the equity market with expertise and data-driven analysis. We consider factors like economic conditions, geopolitical factors, growth potential and market outlook to select funds with specific equities that align with your investment goals and risk tolerance

2. Bonds

Bonds are essentially loans issued by governments or corporations to raise funds. When you buy a bond, you are lending money to the issuer and in return, you receive regular interest payments over the bond's term At the end of the bond's term, the issuer repays the original amount

We can help you build a bond portfolio that aligns with your risk tolerance and income objectives We consider factors like bond credit ratings, interest rates and economic conditions to tailor a bond strategy that complements your overall investment plan.

3. Funds

These are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of assets, such as equities, bonds, or other securities Professional fund managers manage these funds, making investment decisions on behalf of the investors

Funds offer several benefits, including diversification, as your money is spread across various assets. This diversification reduces the impact of the performance of any single investment on your overall portfolio.

Additionally, funds provide access to professional management and research, making them suitable for investors who may not have the time or expertise to manage their investments actively.

The UK's investment funds industry, managed by firms like us, holds a vast amount of assets, making funds a popular choice among investors seeking professionally managed and diversified investment solutions.

Partnering with St. James's Place (SJP) grants us the advantage of accessing topperforming fund managers from reputable global Investment Companies. This allows us to offer our clients unique strategies while maintaining low fund management costs.

Leveraging both SJP's In-House Investment Management team and external consultancies, we carefully select, monitor, and adjust fund managers based on investment styles, market conditions, and performance

We tailor your portfolio's structure to align with your financial goals and effectively manage risk. Our services encompass regular portfolio reviews as well as addressing wealth management needs like tax optimisation, protection planning and estate planning.

According to a study by the Financial Conduct Authority individuals who sought advice increased their retirement savings by an average of £27,664 over ten years compared to those without advice.

4. Real Estate:

Investing in real estate involves purchasing and owning property for the purpose of generating rental income or realising appreciation in property value over time. Real estate investments can include residential properties, commercial properties, or even real estate investment trusts (REITs)

Real estate can be an appealing option for diversifying your investment portfolio In the UK, residential property prices have historically seen significant growth, making it an attractive asset class for both income and potential capital appreciation.

At Tradenomic, we can assist you in exploring real estate investment opportunities and guide you through the complexities of property investment, whether you're interested in buying rental properties, invest in commercial properties, or other real estate options.

"The stock market is a device for transferring money from the impatient to the patient."

- Warren Buffett

TIPS FOR BUILDING A DIVERSIFIED PORTFOLIO:

Diversification is a powerful strategy that involves spreading your investments across various asset classes and sectors. It helps to reduce the impact of any single investment's performance on your overall portfolio and enhances your potential for achieving steady returns. Here are some essential tips to effectively build and maintain a diversified portfolio:

Know Yourself: Understand Your Financial Goals, Risk Tolerance and Investment Time Horizon

Asset Allocation: Allocate Your Investments Across Different Asset Classes

Re-balancing: Regularly Review and Rebalance Your Portfolio

Stay Disciplined: Stick to Your Long-Term Investment Plan

Empower Your Financial Future with Tradenomic Financial: Knowledge is the key to successful investing and at Tradenomic Financial, we empower you through regular educational sessions. Our blend of expert guidance and technology-driven strategies ensures that your investments are optimised for growth.

The Institute of Financial Planning reported that 89% of advised clients feel their financial goals are on track, showcasing the value of professional guidance

Don't let uncertainty hold you back from achieving your financial dreams With Tradenomic Financial, you gain confidence in navigating the investment landscape and making informed decisions Together, we'll unlock the true potential of your investments and secure a brighter future for you and your loved ones.