Our services: savings and investments

Choosing your investments

You work hard for your money, so you want it to work hard for you. Creating the right investment strategy can help you do just that.

Planning for the future needs to be an ongoing process to ensure that the measures you have put in place continue to meet your requirements as your circumstances change. This monitoring and adjustment process will make sure that poorly-performing assets are quickly replaced and that your strategy provides the finances required to meet your long-term goals.

Some of the important factors to take into account include the difference between savings and investments and the level of risk you are willing to accept. While saving money with a bank or building society will earn you interest, investments can provide dividend income as well as capital growth, although there is a risk of getting back less than you put in if the investment performs badly.

By matching your investments with your attitude to risk, you can be sure that the products and funds chosen are right for you, and that they can be tailored to suit any changes in your circumstances.

While past performance cannot determine the future, a well-balanced portfolio will tend to deliver a more consistent return over time, as it will be less vulnerable to an unexpected shock affecting a particular company or sector.

Another issue to consider is minimising the tax liabilities on the money earned. While some products, such as ISAs, provide a tax free income, we will now examine all the options.

Premium bonds: while these do not pay interest, there is the chance to win £1 million tax free, as well as guaranteed security for your original investment.
Investment bonds: these are life assurance products which enable you to invest a lump sum and withdraw five percent each year tax free.
Savings accounts: although the long-term return is likely to be lower, it is more certain, and it is easier to access the funds in an emergency.
Stocks and shares: these provide the best chance of long-term growth, but with a greater risk of fluctuations in value.
Unit trusts and investment trusts: even though these are share-backed products, the risk is spread across various assets.
Property: this is a long-term investment which offers the option of receiving income through rent payments from tenants as well as capital growth.
ISAs: individuals can invest up to £10,680 in stocks and shares, or half the amount in a cash ISA and the other half in a stocks and shares one.
Junior ISAs: from November 2011, individuals have been able to contribute £3,600 into an ISA for anyone under the age of 18 who does not own a Child Trust Fund.
Enterprise Investment Scheme: these investments attract income tax relief of 30 percent, with the chance to rollover any chargeable gain.
Venture Capital Trusts: while individuals can benefit from income tax relief of 30 percent, the investment will need to be held for at least five years to achieve this.

To find more and to discuss these options in more detail, please contact us.