3 Things You Should Do Before Investing

Investing is exciting, nerve-racking and yet is the best way to create long-term wealth and financial freedom.

1. Set a goal

Having clear life goals will give your investment strategy a direction, ensuring they perform efficiently and that returns are foreseeable. Tanggram gives you many goal categories to choose from allowing you to customise and individualise your investment strategies for each differing goal.

2. Resolve high interest debt

Before you decide to apply for any investment, it is crucial that debts fostering high interests are paid off. On a market average, investment returns will very unlikely cover the cost of high interest over the long run since in Australia, the average credit card interest rate is generally between 15% and 22% while the average return on Australian shares (according to ASX) is 9% over the past 2 decades.

3. Understand your risk capacity and ideal time-frame

When we welcome each new client, we make sure we understand their current life stage, how they feel about short term market fluctuations or even losses, their past experience with investment and so on. These indicate which investment portfolio is best and most comfortable for them. Theoretically, markets move upwards in the big picture and the younger you are the more tolerant you are of risk because you have 40-50 years to investment. Looking at such a long investment term, market downfalls will balanced out to return an overall gain. .