How to invest in 2025

First, decide what you want to do yourself and what you want to outsource. If you do nothing and say you will get around it one day, you could impact your financial future by not making the most of allowances and reliefs. I still come across high rate taxpayers with money in instant access savings accounts who are not using their ISA allowances. If you are not sure where to start, get help.

Historic and generic investment advice has always been to start with pensions and ISA's to maximise tax efficiency, invest in ETPs/ETFs to spread exposure to risk and pound cost average consistently over a long period of time.

2025 however presents an opportunity only seen through historic periods of revolution and as such, a lot of money will be made in 2025 through crypto, AI and quantum computing.

Exposure to these asset classes is obviously high risk so never invest more than you can afford to lose, however, those who pick correctly could see gains in the many multiples as we have seen so far with Nvidia and XRP so far.

The trick is to get in early so if your dog’s gardener is talking about it, you are probably too late!

Investing is just one piece of the puzzle when it comes to good financial planning.

The starting point should be to ask yourself what you're actually investing for. Our advice is to start with the end in mind, work out what you'll need at various points in life eg. £250k in your pension in 10 years' time - that'll help inform what you need to do to get there.

Investing usually means doing something other than leaving the cash sitting in a bank account.

Over time, history shows us that cash in the bank will unlikely keep pace with inflation, whereas investing can. However, investing comes with inevitable periods where the stock markets will decline significantly and this needs to be planned for.

Investments have different potentials for growth, and although nothing in life is guaranteed; looking at the historic growth along with what to expect when stock markets fall can help inform the most appropriate blend of investments to target the outcome you're looking for.

Investors must weigh the benefits of DIY investing against professional advice. While DIY investing suits those with the time and knowledge to manage their portfolios, it comes with challenges, including risk management and emotional decision-making. Many DIY investors chase past performance – in that frequently back last year’s top-performing fund in the hope that it will continue to outperform. This can lead to buying high and selling low. Professional advisers help mitigate these risks, offering expertise in portfolio construction, tax efficiency, and long-term financial planning. However, they charge for their services just like lawyers or dentists. For investors making significant financial decisions, the long-term benefits often outweigh these costs. A balanced investment strategy often combines passive and active funds depending on stock market conditions. The UK offers several tax-advantaged investment vehicles, with ISAs and pensions being the most valuable options.

Investors should start by asking themselves two key questions: Do I have the time and knowledge to manage my own investments, and do I understand my personal risk tolerance and long-term goals? DIY investing can suit those who enjoy researching markets and have the discipline to stick to their plan through market ups and downs. However, many people benefit from professional advice—especially when navigating life events, such as retirement, inheritance planning, or large windfalls—where the value of advice goes beyond investment selection.

When choosing between shares, active funds, or passive funds, it’s important to remember that asset allocation is often more important than stock selection. Passive funds, which track an index, can be a low-cost, efficient way to access the market. On the other hand, active funds aim to outperform the market, which can sometimes justify their higher fees. I prefer a hybrid approach of passive investments with an active asset allocation overlay.

Many people are shying away from buy-to-let investments, but this could present some great opportunities, especially after April, once the rush for stamp duty completions has passed. With the upcoming rent reforms, I would strongly advise anyone new to this market to work with a reputable letting agent who can help navigate these changes and manage tenancies effectively. Bricks and mortar remain an attractive investment, and that appeal is unlikely to fade. To succeed, work with a skilled mortgage broker and a professional refurbishment team – this will make a significant difference. Avoid cheap online property courses; instead, invest in a knowledgeable property finance broker. Their expertise will be worth their weight in gold.