One of the biggest changes that you can make when trying to secure your long-term finances is starting to invest.
While your return is never guaranteed, the results that you’ll get from investing money will typically far outstrip any interest that you could earn through a simple savings account. Although it can be a challenge for new investors to know where to start, building a strong investment portfolio is simple enough if you have the right tools and support.
One option that you may wish to consider instead of going through a high street bank, is joining an established investor community. One such community is re:investments. They’re a company that exist independently of the big banks, and their aim is to help grow a sustainable and scalable investment model.
Here’s how re:investments works for new investors.
Become part of an investment community
Re:investments currently work with around 70,000 private investors, as well as an additional 8,000 accredited investors. Once you join the platform, you’ll be connected with a range of different investment opportunities, covering three main categories:
- Person to business (P2B) – this means providing loans directly to businesses, helping them to grow and reaping the rewards when they do.
- Investment sectors – your money will be invested long term into one of the more stable sectors of the economy, such as transportation or energy/industrial.
- Person to person (P2P) – finally, you can become involved with financing loans issued directly to individuals. Claiming the rights to higher interest loans can help you see a healthy return.
The variety on offer here means that private investors have access to a range of options usually only available to accredited investors. Although you would need to be accredited if you wanted to start investing large sums of money – this means meeting certain criteria including having a net worth of over $1m (approx. £750,000 – £800,000), and is out of reach to most investors – it makes it the perfect platform for those who are starting to build their portfolio. You can get started with as little as a fiver.
Get support from the experts
When you’re getting started, it’s nice to know that your investments are being watched over by an expert. With re:investments, every transaction is carried out by a professional analyst, and there are experts looking after the different investment areas, with oversight of the activity that takes place through the platform.
Whether you choose P2B or P2P as your preferred investment route, the plans that you look at will have been curated by a designated team – so you’re not going in blind.
Even with all of this support, things can feel a little overwhelming if you’ve never built an investment portfolio before. With that in mind, it’s always important to reach out for advice if you’re not sure how best to invest your money. Advisers can help by considering your individual circumstances and making recommendations that suit your financial status and appetite for risk.
Draw down on your investment pot… or watch your funds grow
Once you start to see your funds growing, you’ll have a big decision to make: will you start to take advantage of your new passive stream of income, or will you use the income to invest further? If you’re able to commit to investment long term then you’re likely to see the biggest growth, and you’ll be able to ride out any fluctuations in the market.
The way that you receive your investment income will also depend on the type of investment that you have opted for. Re:investments state that with P2P investment, you will receive payments daily for the length of your deposit. For P2B this is weekly, and for those who choose to invest in an investment sector the payment will be in one lump sum at the end of the deposit period. In any case, the deposit that you make is insured.
As you can see, investing through this kind of peer-to-peer platform is very different to going through a traditional bank. It offers a range of new, refreshing ways that give you more control over your investment portfolio, and can help you to build a passive income stream which will benefit you in the future. The specific emphasis on providing opportunities in the most stable and profitable areas of the market means that you can feel more secure in your investment, too. Finally, it is an opportunity to use your money to do something good – providing financing for individuals and businesses who can use your money to grow and thrive.