A)  Make a list of your financial objectives, then group them according to the length of time (short, medium, and long term).

At Innovest Global Wealth;

The liquidity strategy includes short-term objectives: Your life expenses, usually estimated every three years, are prioritised under the liquidity approach. Travel, vacations, local taxes, electricity prices, hobby fees, general daily, monthly and annual expenses, and other lifestyle expenses are among them.

The longevity approach includes the following medium-term objectives: The longevity plan puts long-term needs first, including retirement, house ownership, expanding your business, paying for your children’s education, and any unforeseen bills.

The legacy strategy includes the long-term plan: The Legacy strategy focuses on requirements other than your own to enhance and aid in the causes and individuals dear to your heart. For example, giving your children and future generations a lasting legacy, supporting initiatives that strengthen and improve your community today and tomorrow, and helping those in need through charitable gifts, sponsorships, and other humanitarian motives.

At Innovest Global Wealth, we focus on making the three strategies work together throughout your life so your money is spent with a “know where your money is and why” mindset.

B)  Recognising your level of risk

Since all investments, no matter where they are made, involve some level of risk, each investor must determine the level of risk they are ready to accept.

The risk tolerance is sometimes determined by age and personality; it can be high, low, or somewhere in the middle, frequently referred to as moderate risk. Before beginning or undertaking any investment, it is crucial to properly define and establish what level of risk you are comfortable with taking on.

C)  Diversify your Portfolio

I encounter numerous people in East Africa who only invest in real estate. At Innovest Global Wealth, we encourage our customers to diversify their portfolios to increase annual returns while spreading investment risks.

A well-diversified portfolio will lessen the volatility of your holdings; for example, own some real estate, invest in both domestic and international bonds, corporate and sovereign bonds, structured notes, ETFs, Stocks, and set aside money for savings and retirement if you are a middle-class income earner, and lastly, keep some cash on hand as your go-to haven for emergencies.

We are happy to show you our wide range of products, which will diversify your portfolio and lower your risk.