When is it okay to pick shares?

You know it's important that your money makes money. You've heard that diversified portfolios are good, don't forget investing in low cost exchange traded funds (or ETFs), also good. Most importantly thinking long term when it comes to investing.

But we know some people still like buying into companies or industries that they believe in or believe will make them a lot of money.

We’re not saying you should never do it, but we are saying that it needs to fit in with your overall financial plan especially when it comes to trading individual shares or buying into:

Cryptocurrencies (ever heard of dogecoin, mooncoin, crypto kitties, potcoin?). Whatever, we're not in the speculation business. We have no clue what Tesla is going to do or if weed shares will go to the moon or go up in smoke. We have no idea what bitcoin’s future looks like... Will it go up? Will it go down?

Like any speculative investment there will be great success stories alongside tragic wipe-outs. That’s why our advice is always simple even if it’s a bit boring.

Focus on:
Long term, steady growth with a balanced portfolio made up of ETFs that track the entire market. And never gamble with more than 2-3% of your entire portfolio in individual shares/ bonds/ currencies/ commodities that YOU have a “GOOD FEELING” about.

We don’t completely lack an adventurous spirit, but when you're saving for a goal as important as your home deposit, it pays to play it safe. That's why when you sign up with Smart Home Deposit if you're not saving and investing for longer than four years we automatically advise you to invest conservatively to help you play it safe.

Again, we don’t think picking shares is the best way to save for your future life goals. Still, there’s nothing wrong with wanting to invest in companies that you believe in. And it's safe to do if you're not using more than 2-3% of your savings, which promises not to jeopardize your future dream home.