If you want to build your wealth towards your future goals – whether that be your retirement, growing savings for your children, or increasing your wealth resilience – investing effectively is an essential part of the process.
Investing in the right way means aligning your investment strategies with your personal financial goals and your unique financial circumstances. As such, there are several key things you can consider doing when looking to enhance the way you invest towards your targets.
In this article, we’ll look at how you can invest in the right way, from creating a clear plan to help you stay on track to utilising Individual Savings Accounts (ISAs) – like the Netwealth ISA – and pensions.
Start with a financial plan
A financial plan is a good place to start when re-aligning your investments. This plan will act as a roadmap for your financial journey, showing you the steps you need to take to achieve your goals as efficiently as possible.
Your plan will consider things like your income, expenses, assets, and future goals, to create a strategy that suits your unique requirements. No matter what your goals are, your plan will outline various steps needed to build your wealth towards them – which might include investing in certain securities or choosing the appropriate risk levels. It ensures that your financial decisions support your long-term objectives.
Seek professional advice
When it comes to any form of investing, financial advice is one of the most effective ways to provide clarity and confidence with how you build your wealth.
You can receive personalised advice that’s tailored to your goals, risk tolerance, and financial situation, which is more beneficial than a one-size-fits-all approach. Advisors will help you make informed decisions, from choosing the right investments to planning for retirement.
Utilise tax-efficient accounts
It’s also important to make sure you’re maximising tax efficiency with your investments, which is key to growing your wealth. Two essential tools are Individual Savings Accounts (ISAs) and pensions:
ISAs
An ISA allows you to invest up to £20,000 per year (as of the 2025/26 tax year), and all your savings are free from income and capital gains tax (CGT). You can open a standard cash ISA to save your money, or choose a stocks and shares ISA with a flexible, tax-efficient way to invest in line with your goals.
Pensions
Pensions are a good investment vehicle when planning for retirement. They offer tax relief on contributions, and your investments can grow tax-free. You can contribute up to £60,000 a year, tax-free, and make regular contributions to grow your savings into a significant sum.
Both ISAs and pensions are powerful tools for long-term financial planning, helping you save more effectively for the future.
Align investments with your goals
Your investments should reflect both your financial objectives and risk tolerance. Netwealth, for example, offers a range of investment portfolios managed by an experienced team, so you can choose the right investment path that suits your unique needs.
Make sure you regularly review your investments to ensure they remain aligned with your changing circumstances and objectives.
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Investing in line with your financial goals requires a clear plan, informed decisions, and the right tools. So, whether you’re starting out or reviewing your existing strategy, the right approach can help you achieve your financial ambitions.
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Please note, the value of your investments can go down as well as up.
