Taking Control: 5 Steps for DIY Financial Planning Success

Today’s post has been brought to you by Flying Colours who provide financial and investment advice in the UK.

With the recent bank of England base rate cut to 0.25% and expectations that this may fall to 0.1%, banks have slashed the returns available for cash savers. Indeed, Santander’s lauded 123 account has halved its interest rate and the trend looks set to continue for years.

As a result, millions of UK savers and those managing their money in retirement are starting to consider investing in shares as a way to achieve precious growth. And for those willing to put their money away for at least five years this will be an increasingly attractive option.

There are two main routes you can take to investing your money.

  • Make your own investment decisions and select your own stocks and investment funds.
  • Get assistance from a qualified financial planner.

DIY Investing

Many individuals take investment matters into their own hands, designing their own strategies and choosing from the vast array of investment products available to create their own portfolio.

But if you’re unfamiliar with investing, how can you make sure you don’t make a hash of those important financial decisions?

While DIY financial planning is entirely possible, it can be a minefield. Like medical self-diagnosis, the internet contains some sensible advice… but it’s also awash with misleading and often downright wrong information.

If you are going to take the DIY financial planning route, here’s a top-5 list of things you should know:

  1. Set your personal goals: Define short and long-term life goals; buying a home, starting a family, setting up a business or funding your retirement. Decide what you want to achieve and when.
  2. Assess your assets: What do you have – both good and bad. What financial assets do you own? Property? Cars? Investments? What debts do you owe? Can you afford to invest?
  3. Understand your own attitude to risk: And your capacity for loss. Only then should you start to think about the types of assets you need to try and achieve these goals.
  4. Ensure your investments are thoroughly diversified: This is the best way to reduce risk and is the equivalent of not putting all your eggs in one basket. Once you’ve decided what blend of assets you want to invest in, try and diversify within the asset classes themselves.
  5. Create a roadmap to success, and monitor it: Build a plan that will take you from where you are right now to where you want to be.Keep an eye on its progress and re-assess as your life changes.

What about getting some professional help?

Good financial advice should create more value for you than it costs. But many people perceive it as a service only required by the super-rich. And with many advisers in the UK only concentrating on clients with hundreds of thousands of pounds and charging exorbitant fees they’re not entirely wrong.

This creates a problem for many people: they want to grow their wealth and plan for the future but aren’t comfortable with making their own investment decisions and are put off by the cost of advice.

Get a financial flying start

At Flying Colours we want to help people make the most of their money, whether they are saving for retirement or figuring out what to do when they finally get there. Our service is offered over the phone which means we charge much less than the typical financial adviser. This can make a massive difference to how your wealth grows over time.

If you’d like to speak to someone about your financial future contact Flying Colours for a no-obligations chat today.


Author Bio: Guy Myles is CEO of low-cost financial advice business Flying Colours. He is determined to improve access across the UK to affordable financial advice and investments. Previously, in 2000, Guy co-founded Octopus Investments, which manages over £5bn of UK investors’ money.

*This is a collaborative post.

*Image courtesy of Pixabay – edited and modified with text and colour.

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