The stock market continues to show signs of recovery and, with the green shoots beginning to appear, many investors are now eager to pick up a bargain. This is obviously good news for us all, but investing, whether for income, capital growth or both, should be viewed as a journey rather than a destination.
As we move through the different stages of life, our investment requirements and objectives change. Have you considered recently where you are at present and given some thought to the next stage of your investment journey? We can assist you with this and provide complete independent advice about what steps you should take next. Wherever you are currently, it's important to consider the next stage in your investment strategy.

20 somethings...
For most young people in their 20s, investing for the future is not usually a top priority. Paying off debts from those student days is usually the main concern, with spending rather than investing the order of the day.
However, as the old saying goes, 'Tall oaks from little acorns grow', so doing something is almost always better than doing nothing!

30 somethings...
If you are at this stage of your life, you may have some shares, or perhaps free shares allotted to you following the building society and insurance company conversions of recent years. Then there are those PEPs you may have purchased. If you haven't recently reviewed these, it's important to do so in order to take advantage of the new investment rules affecting where your money can now be invested. We can help you with this.
Depending on your attitude towards risk-for-reward, now is the time to continue building up your investment portfolio, taking advantage of the numerous investment vehicles. We can help you find the best-performing fund managers for your money.
Now might also be an appropriate time to look further afield than just the UK stock market. For example, in one tax year you could take out an Individual Savings Account (ISA) built around a strong European unit trust. The following year, you could possibly consider a US unit trust, then maybe a broad global or specialist fund.
As your salary changes, don't forget to keep your pension saving ratio in line with any increases.

40 somethings...
It's important to keep a check on your investment portfolio for balance and spread. Is it too heavily weighted towards one country or sector? Diversity is important to keep a good spread. We can help you review the different stock markets and sectors.
If your risk-for-reward profile is more adventurous, around half of your investments could be allocated to UK funds, and an equal slice to European, American and international funds, possibly including Far Eastern funds and a small percentage in emerging markets.
At this stage of your life, if you have accumulated capital from earlier years, you might wish to talk to us about spicier investments such as Venture Capital Trusts or Enterprise Investment Schemes. However, they are not for the faint-hearted.

50 somethings...
Now is the time to pull together all your different investments, savings, pensions and insurance plans. We can help you assess your situation and check that you are covering all the key investment themes and areas, so you can collect growth wherever it arises.
Balance is still important. Don't forget to check those PEPs, as some might no longer suit your investment requirements.
This is also the stage in your life when you need to work out just what you can expect in retirement. Take into consideration the state pension and any company or personal schemes you have or currently belong to.
As you approach retirement, you don't want to see money wiped off the value of your investments because of a stock market correction. It may be appropriate gradually to move some of your money into more cautious investments. These might be corporate bond funds, or equity-based investments that give you a slice of future stock market growth but with a floor below which your fund cannot fall if markets slump.
In the run-up to retirement, it can pay to move from pure growth funds into income-producing alternatives - but without actually drawing the income. You can have it reinvested to boost the value of your fund for the final years of your career, knowing that you can start to withdraw it at any time in the future when your needs change. Equity income unit trusts - which concentrate on high-dividend shares on the stock market - or mainstream corporate bond trusts are some of the options available. And you could move PEP or ISA money from pure growth funds into these trusts without losing the tax break.

It's vital not to leave your investment plans to chance. Wherever you are on the investment journey, why not e-mail or contact us for a review of your situation.

The Financial Services Authority does not regulate mortgages, taxation advice, bank/building society deposits, Cash, ISAs and some forms of long-term care.

Article date January 2004