The choice of platform provider doesn’t have to be difficult for those looking to start their investing journey. If you start small and get used to investing a monthly sum, you will soon be able to assess your appetite for risk and how you handle the ups and downs of the stock market.
For newer investors, it is worth checking out the robo-advisor platforms. They have been designed to simplify investing. Here’s our article on How to choose the best robo-advisor.
Investing isn’t for everyone. After you start investing small sums, you might find that you don’t enjoy the journey or you find it stressful. If this is the case, then you can always withdraw your money and stick with savings accounts and premium bonds. And that is totally fine. It’s got to be what’s right for you.
However, based on past performance (which is not a prediction of future performance), investing has consistently outperformed savings account when accounting for inflation over the long term. As the saying goes, “past performance is not a guarantee of future results”. Investing is for the long term and so should be entered into with your eyes wide open for those starting out.
Make sure you have your finances in good shape before starting and don’t risk more than you are willing to lose. If you are just starting out then perhaps choose a platform that’s easy to use, even if it costs slightly more.
Finally, after a year of investing automatically each month, review your requirements and check the original choice is still right for you. It’s better to get started than to keep thinking about it.
If you’d like to learn more about investing or simply improve your personal finances, come join our Free UK Personal Finance Group over on Facebook. It’s full of like-minded people all trying to be better with money. I’d love to see you there.
Here’s to Financial Fitness