Amount to invest
 

So you have made all of the other decisions relating to your investment objectives. Now, how much will you invest? On the other hand, should that be how much can you afford to set aside for investment purposes?

The first area we advise on is that you set aside an amount within a liquid account such as a bank account.  This you should view as your emergency fund, and it should be somewhere between 3 to 6 months’ net income.  This will depend on your personal preferences.  If you do not already have an amount you can set aside for emergencies, then we urge you to consider this before looking to invest any other monies you may hold.  If you are in the position where you already hold this amount, then ensure your other savings are catered for, such as your retirement, any education fee planning for your children etc.  Unless that is, you are looking to invest for these purposes.

If after all this you still have excess cash to invest, you need to decide how much you wish to invest.  You do not need to invest everything in one go. You could quite simply build up your portfolio over a period of weeks or months, which ever you feel more comfortable with.

How much does the typical investor invest?

Well, there is no typical investor.  It all depends on your personal situation and comfort level.

We have investors investing as little as $3000, looking to build on this in the months and years to come. Whilst at the other end of the spectrum, we have individuals and institutions investing millions of dollars. Yet, we offer all of our clients the same level of professional advice and support, regardless of their net worth. In fact, we do net set the minimum investment levels, it all depends on the investment fund company.

You may of course prefer to save on a regular basis.  Offshore-library has access to a range of providers who offer contractual regular savings vehicles, from as little as $200 per month, although these are a disciplined form of medium term savings, which need to be funded on a monthly or quarterly basis throughout your selected savings term, otherwise they may impose quite hefty penalties for early surrender fees. If you would like further details on the regular savings accounts, please fill in the feedback form requesting further information.

We hope that these investment basics will assist you with your investment decisions. If not, then please contact one of our experienced investment team members for guidance and support. Click here

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