It is very easy to take the plunge into stock market investment without any clear idea of why you are taking that risk or working out a strategy. It might work, but success is more likely if you take a more disciplined approach. These are the main factors to think about:

Do you have a specific investment goal, such as funding private education for your children? If so, is stock market investment the right route to take to achieve it? You need to commit your money to stock market investments for at least five years, preferably longer, to avoid the risk of a short-term slump in share prices. What is your time horizon? The longer the investment period, the more risk you can take, as you have more time to recoup any losses. Are you investing for income or long term growth? These are quite different investment routes, although ultimately, all investment is about buying income, either now or in the future. How much risk are you prepared to take? This is fundamental to your whole approach, so you need to be very clear about the nature of investment risk, the relationship between risk and reward, and your own attitude to risk. Set an investment objective. You might aim for a return of 10 per cent a year, for example, or to beat the FTSE 100 index by 1 per cent a year. Setting an objective will help define your investment approach. The higher the return you want, the more risk you will have to take. Decide on an investment policy. Set a ceiling on how much you are prepared to risk in the stock market. Think about whether you want to balance investment in shares with other investments such as fixed interest bonds, property or cash.

	Tip Make use of your ISA savings allowance to save and invest tax-free. You and your partner can each put away £7,000 per tax year. This can include £3,000 in cash, or the full amount can go into stock market investments.

How should I split my money?

Get some ideas on how you might spread your money between various types of investments from the charts below. These show the portfolio split for each of five life stages:

Young and single, with very low outgoings, flat-sharing or still living at home Young and married, or attached, with no children Young and married, or attached, with children Middle-aged, with children approaching further education Pre-retirement

Click here to see how your assets should be allocated

"Wealth warning"

The asset allocation models displayed are intended to provide a guide as to how an individual in a variety of circumstances may consider investing. They are not intended as advice and any individual wanting an asset allocation plan based on their own circumstances should consult an IFA. The cash component, where it features, is not intended to take the place of any emergency fund.