5 Investment Options If You Have Sold Your Company Shares

5 Investment Options If You Have Sold Your Company Shares

If you have owned shares in a company and have decided to sell them, what are you planning to do with the funds that the sale generates? We trust that you plan to use them wisely and one of the ways that can be achieved is to speak to financial advisors to discuss ways of investing them. Investment planning is not something that should be done without thought, and presuming you want to keep safe what you earned from your shares, then investing needs careful consideration.

In discussing investment planning with your financial advisor one of the facts that should come to light fairly quickly is that you have choices as to what you can invest in. One choice is whether you invest in one type of asset or several. Our view and we hope the view of the financial advisors you speak to, is that diversity is far preferable. In other words, rather than investing in just one type of investment, you should spread your portfolio across several options.

This gives you important benefits that you would not see if you placed all your eggs in one basket, as it were. The first benefit is that it reduces risk. An example is investing everything into the property and the property market plummets, which many of us have seen more than once in our lifetimes. By diversifying, whilst your property investment value may drop, investments in other asset classes such as government bonds may have risen.

A second benefit of diversifying is that your investment value can be boosted even if some of your investments stall. For example, if you have everything ploughed into government bonds and the price of gold rockets, you have missed an opportunity to increase your investments’ value and your net wealth.