Whether it’s because you’ve received an inheritance, received a lump sum from your pension or built up a tidy nest egg by saving on a regular basis, your money should be invested wisely so that its spending power is protected for the future.
Although bank savings accounts are seen as the traditional safe haven, we have seen in recent years interest rates being reduced sharply and deposit accounts may not now even be keeping the value of your money in line with changes in retail price inflation.
Many people recognise that to achieve better long-term protection for their money against the effects of inflation, it is often worth considering stock market related investments. These can be invested through financial products such as Individual Savings Accounts (ISA), Investment Bonds and Unit Trusts. These tend to use funds which invest directly into company shares, commercial property, Government or Corporate debt (known as Fixed Interest) and other investment instruments, both nationally and internationally. Please note that investments do not include the same security of capital which is afforded with a deposit account.
When choosing what investments are suitable, the main areas of consideration are:
your attitude to investment risk – are you prepared to accept the value of your investments may fall
the tax efficiency of the arrangements
what level of access is required
the charges to meet your requirements
The aim is to provide simplicity and flexibility whilst maintaining a good return. The secret of investing is to diversify your portfolio.
The are no guarantees in life, and the same applies to investments. The value of your investment can go down as well as up and you may get back less than you have invested.
If you would like advice on arranging a suitable investment, reviewing existing portfolios, maximising the tax efficiency of your investments, placing money into trusts or drawing an income from your investments please contact Meridian Financial Planning Ltd.