Time is the most powerful investment tool. It may not be on every investor’s side but it certainly tips favourably towards the young investor. The young investor has the benefit of a longer-term view of the markets – their rises, their falls and stagnation periods.
Age changes the perspective of things. The global financial crisis back in 2008 meant different things to different people, and one determining variable that changed the perception of people was age.
For the young investor this period translated into opportunities in the investment world while it spelt concern for the then-recent pensioner.
Investing one’s hard-earned wealth is essentially about getting the balance of risk and return right, taking into consideration the individual person’s stage in life and personal circumstances.
There is no magic formula, and these variables will continue to change over the lifespan of the individual.
As a rule of thumb, the younger the investor the more the investment period available to him or her. Personal preferences still play an important role. While some may be more risk-averse than others, the possibilities of the younger investor favouring the riskier options are generally higher.
Typically, young investors are resolving to make their own investment decisions. There is nothing wrong with this, as long as one is knowledgeable and conversant in the field of financial markets.
The young investor has the benefit of a longer term view of the markets – their rises, their falls and stagnation periods
Moreover, it is important that one has the time to focus and dedicate to the intricacies and complexities that govern the world of investments. On the flip-side of the coin, there is opportunity cost, in the form of forgone openings that the young investor might not be cognisant of, or may not have access to the tools necessary to trade in time.
Financial advisors at BOV Wealth Management are equipped with the necessary tools and backed by a focused and dedicated research team of analysts who review markets meticulously before investment stances are taken.
Once again, time is of essence in this area. This combination of expertise and tools reduces time to market considerably, to the advantage of the client.
There may be the perception that the cost of having a personal financial adviser is prohibitive. Like any other service, there is a cost attached to the services provided. However, it far outweighs the cost of missed opportunities, for instance.
Irrespective of whether one is a young or a more mature investor, or the type of risk profile one has, the financial advisor at BOV Wealth Management helps customers to design a plan to meet their investment objectives set over a pre-determined and agreed timeframe.
Aldo Scardino is the executive responsible for the wealth management function at Bank of Valletta plc.
The information, views and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice.
Bank of Valletta plc is a public limited company licensed to carry out the business of banking and investment services in terms of the Banking Act (Cap. 371 of the Laws of Malta) and the Investment Services Act (Cap. 370 of the Laws of Malta).