Want to invest, but don’t know where to start?
Well here’s the simplest way to become an investor and what’s more it can be done in four easy steps:
- Select a platform
- Choose a low cost index tracker fund
- Set up your automatic monthly payments into the fund
- And just leave it to grow
Select a platform
A brokerage platform is normally a website where you invest in funds or individual shares. Popular platforms in the UK include Hargreaves Lansdown, Interactive Investor and Fidelity.
Choose a fund
All the main platforms hold a broad range of funds to choose from. Funds are easier to invest in than individual shares as you only have to select once to decide which fund you’ll invest into and then hand over your cash.
The fund manager takes responsibility for buying and selling the individual shares that make up the fund.
If you’re not sure what sort of fund to invest in, choose an index tracker fund. These types of funds track a market such as the FTSE250 and are generally inexpensive in terms of fees.
Tip: make sure your fund is within an ISA to get the tax-free benefits – it will make a big difference to your wealth in the long run.
Automate your monthly payments
Having chosen your fund, set up the platform to take a monthly direct debit payment from your bank account to invest in the fund.
Choose an amount you can comfortably afford and have it taken out of your bank account at the start of each month (just after pay day). This prevents you spending it all on other things throughout the month.
Leave it to grow
With your automated payments set up, the next you need to do is…
… do nothing!
Yep, that’s right. Just forget all about it and let your wealth grow in the background, while you get on with living life.
You don’t need to worry about buying or selling, and with your payments on autopilot you don’t need to worry about complex market timing strategies either!
The only investment strategy you’ll need
Now here’s some really good news if you like simplicity. This investment strategy is all you need to build comfortable wealth for the future.
Sure you can have a go at trading shares and all the other shenanigans if you really want to, but there’s no need to make things more complicated and chances are you’ll come out a lot better off by keeping it simple.
Thanks for reading 🙂