How to build an investment portfolio

Let’s face it, now more than ever we deserve to feel positive about the road ahead. Especially hardworking school leaders in the education sector.

With so much to juggle right now, your important financial objectives may have taken a bit of a backseat and perhaps your appetite for planning your future too.

Mark Butterworth, Head of Financial Advice Planning & Research at Skipton Building Society has kindly given us insights into building an investment portfolio – including why a little expert help could go a long way.

How an investment portfolio could be a good way of growing your money

Mark explains, “Interest rates are currently low on savings accounts. That means it’s hard to make any real returns on money held in a savings account.

“There’s no doubt they are great for short-term needs and emergencies. It’s wise to keep at least three months’ salary in savings. But when it comes to your long-term financial goals – and potentially achieving a greater level of growth – it might be worth considering spreading your money around different types of investments.”

Diversify, diversify, diversify

Mark states, “Experts usually recommend you apply the golden rule of ‘diversification’ to your investment portfolio. Put simply, this means splitting your money across the various asset classes.

“Our knowledgeable advisors will help you to understand asset classes and how they perform differently.”

It’s a balancing act to make stronger financial plans

Of course, you could opt to fly solo when it comes to allocating your money to different assets in a way that suits your needs. But there are a number of important factors to consider. And taking time to talk these through with someone who really knows their stuff could make all the difference in your choices.

An adviser can help you to establish:

  • Your reasons behind investing your money. Think future aspirations that are at least five years away. Or you may simply just be looking to get more from your money.
  • The level of risk you’re willing to take on losing money in return for a higher chance of growth in the long run.
  • The amount of time you plan to invest your money for. An adviser will always recommend that you should be prepared to invest for a minimum of five years.

Mark adds, “These factors are very important towards establishing your attitude towards risk and the setup of your portfolio. It can prove tricky to achieve the right balance – taking a level of risk you’re comfortable with to help you reach your goals, while at the same time keeping a portfolio which shouldn’t be impacted too much by market falls.”

This is where the helping hand of an expert could really help. It’s an adviser’s job to understand your attitude to risk so they can recommend options that are suited to you.

Good advice doesn’t end there

Things change. Life happens. A divorce, an inheritance, helping out loved ones, or a change in income could all have a significant impact on your financial situation.

That’s why it’s good to sit down with an adviser every now and then to talk about your priorities. If things have changed, then your portfolio might need to as well. It may be that you need to reduce the level of risk you’re taking, or you might even want to increase it. Whichever way it is, an adviser could help you keep your portfolio structured in the right way to reach your goals.

NAHT Personal Financial Services are here to help

All told, building an investment portfolio requires proper consideration, skill and knowledge. And to get off to a good start, it’s important the next steps you take are in the right direction. That’s why NAHT Personal Financial Services are here to lend a helping hand.

We could help you build a portfolio designed to suit your needs – setting you on the right path towards reaching your goals. We’ll explain everything clearly to you, plus outline any charges that may apply beforehand. There’s no pressure to act – you can take the time you need to decide if you’d like to act on the advice.

Our recommendations are likely to include stock market-based investments. These are not like bank and building society savings accounts as your capital is at risk and you may get back less than you invested. The value of your investments and any income from them may fall as well as rise.

Get in touch

Call NAHT Personal Financial Services today on 0800 121 4596  to see if you could benefit from financial advice or request a call back.

NAHT Personal Financial Services is a trading name of Skipton Building Society, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority , under registration number 153706, for accepting deposits, advising on and arranging mortgages and providing Restricted financial advice. Principal Office, The Bailey Skipton. N. Yorks BD23 1DN