Why you may be looking into investments
The process of investing is where you allocate money in the expectation of a benefit in the future – typically a financial return. Investing does come with risk, especially if you are investing all the cash that you own, with no source of back up for any unforeseen financial difficulties.
Common reasons people look into investments and investment planning:
- As a way of potentially increasing the value of the cash they currently have
- As a way to save money tax efficiently
- As a way of saving to eventually pass to a family member
Whatever your motivation to research investments, working with an independent financial adviser will help you to carefully consider your options and weigh up the risks involved.
The information we provide on this page and throughout our website is intended only as guidance which will help you identify your options and narrow down your choices. You should seek advice appropriate to your specific circumstances prior to making any decisions. Contact us today on 02380 920128.
What options are there for investing?
There are many options for investing, typically categorised as Asset-backed investments and Deposit based investments.
Asset-backed investments (Medium to long term investments)
There are lots of asset-backed investment options available to individual investors. The most commonly known options are:
- Shares – where you can invest in a company which is selling shares to generate money. Investors typically receive a dividend twice a year based on the profitability of the company.
- Individual Savings Accounts (ISAs) – an attractive tax-efficient way to invest up to £20,000, as investors do not pay any personal tax on income or gains.
- Investment bonds – The bonds are pooled investments whereby relatively small amounts of your money will be invested to create large pooled funds, maintained by a life assurance company.
Deposit based investments
In the UK every basic rate taxpayer has a Personal Savings Allowance of £1,000 meaning the first £1,000 of savings interest earned in a year is tax-free. Higher rate taxpayers (40%) have an allowance of £500, and 45% taxpayers have no savings allowance at all.
The most commonly known deposit based options are:
- Commercial Banks and Building Societies – you pick from the variety of savings accounts on offer. Interest rates will vary in line with the general level of interest rates in the current market. More preferential rates are typically available when choosing a savings account that restricts access to the money on deposit.
- Cash ISA – save up to £20,000 tax free with a cash ISA. Cash ISAs are available from age 16 years so an ideal way to save early on.
- National Savings and Investments (NS&I) – this is a Government backed scheme. For full details visit the dedicated website http://www.nsandi.com/
The benefits of investment planning with an Independent Financial Adviser
To plan your investments effectively, in full consideration of the potential benefits and risks, you should seek guidance and advice from an independent financial adviser. Based on factors including how much you have available to invest, what your financial goals are and your attitude to risk, an independent adviser can look at the whole market and make recommendations to you.
Researching investments on your own can often feel like a daunting task and could put your life savings at great risk by not fully understanding the intricacies of the investment. Investing is often a long game and therefore needs to be managed effectively throughout. This is something your adviser can do for you, keeping you up to date with developments and making further recommendations.
Why choose HJS Financial Planning for your investment planning?
With so many factors to consider with investing, experience and approach is key when finding the right independent financial adviser for you. The team at HJS Financial Planning have a wealth of experience helping clients to invest their money wisely. We pride ourselves on our approach of building strong, personal relationships with all our valued clients and we have a strong sense of loyalty and accountability toward them.
If you are considering investing as a way to achieve your financial aspirations talk to our team today on 02380 920128.
The value of your investments can fall as well as rise and you may not get back the original amount invested.
Tax planning and trusts are not regulated by the Financial Conduct Authority.
HJS Financial Planning is authorised and regulated by the Financial Conduct Authority no. 755721.
The guidance and/or advice contained in this website is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK.