Six key steps to long term investing
3.Maintain the courage of your convictions
Many people believe that information and knowledge is essential to be a successful investor. But just as important is having – and maintaining – the right attitude.
In practice, for many people, it can be as simple as not looking at the value of your investments on a day-by-day basis. It’s sensible to review your investments every 6 – 12 months and consider their performance at these intervals. Any more frequently, and you may end up causing yourself unnecessary grief when markets are turbulent. If you are getting nervous during tough times, do a quick investment health-check:
- Can I still afford to have this money put away for the long term? (the 'affordability' check)
- Are my goals and objectives still the same?
(the 'aspiration' check) - Can I still accept the same level of risk over the long-term?
(the 'attitude to risk' check)
Your financial adviser can help you to answer these questions. Importantly, if you are still heading for the same destination, then you may do best to stay on the same course, despite choppy waters along the way.
