Investing your income: what to consider

When it comes to investing your income, it seems that we will all need to consider this and the sooner the better.

The fact is that research shows there are simply many people out there, for whatever reason, whoa re not investing the money now that they need to have a worry free future in the financial sense of things.

Part of the problem is that people tend to live longer now in the Western world than before, and this large generation of people who are going to hit retirement age even if it goes up will have to keep on working as there is just not enough money there to enable them to actually stop work at that age!

Therefore you need to ensure that you think about how to invest for the future, before the future comes up and hits you unawares as it were!

Elements to consider include how much risk you are willing to take on.

As a general rule the more risk you are willing to take then the more potential gain and upside there is, but also the greater the chance of loss for instance if markets turn unfavourably against your investments.

It's for this reason that you should only have a small percentage of your income in riskier investments as a general rule - though note there are occasional exceptions to this rule which you will need to discuss when you map out your plan on investing your income with a financial planner.

You will also need to consider the potential return from each investment opportunity, and also even things like how much involvement and hands-on you want to be with managing, tracking and if necessary changing things with your investments, or if you very much simply want to set something up and leave it to grow on its own accord independently of you.

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