If you have been making investments for some time, you are probably wondering what you can do to protect your nest egg—both now and in the future. There are a number of ways that you can better protect your investment. 

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Advice

Even as an experienced investor, there are going to be times that you too, will need advice. It is imperative that you seek it when needed because an unbiased opinion can help your entire portfolio. A financial advisor is qualified to be able to meet your needs in both the short and long term. 

Many financial investors are supported by a team of investment and financial experts. They are typically unbiased and have no emotional connection to you or your money. So they can give straightforward, actionable advice you can act on. 

Equally, seek out experts in asset and wealth protection, they too will have information that can change how you manage your investments going forward and where you put your money now. 

Diversify Your Investments

Also known as ‘don’t put all of your eggs in one basket’. It can be dangerous to put all of your money into one specific investment. Different asset classes react differently to events that happen. For diversification, you ideally need a combination of assets like shares, property, bonds, and commodities. 

This might not protect you in an initial economic disaster, but it will deliver a better return over time. 

You will need to decide if your portfolio has a good enough mix of shares across larger and smaller companies too. 

Risk Assessment

This is about how your risk appetite is. If you are taking a DIY approach to your investing, then you need to know pretty quickly what you can and cannot cope with. If you are too comfortable with risk, you might find that you are throwing cash at things that won’t pay off at all. Some people find that their attitude to risk is particularly high when markets are performing well. 

Yet, as soon as there is some volatile fluctuation, the risk does not sit as well with them. 

Finding your most comfortable risk level will be something that takes time, but it will protect you in the future. Understanding the risk factors and your own boundaries is very important in order not to make any mistakes you will regret at a later date. 

Invest Regularly

If you are waiting for the right conditions, you might be waiting forever. Managing risk in uncertain times can be much easier when you invest at regular intervals. Regular investments have the benefit of pound-cost averaging/dollar-cost averaging. The same amount of money put in each month will buy more of the units when the market is lower and fewer when the market is higher—managing volatility. 

Spending time understanding your investments, how they work, and what is missing in terms of your portfolio will give you a more robust and well-rounded portfolio. Protecting your investments and wealth, both short-term and long-term.