Ready To Invest? Here’s How To Get Started

If you’re looking to get a better return from your money than you can from your bank account, then the time might be right to think about investing for the future. Before you begin, here are some golden rules to consider.

Hold Some Cash

You’ll need to have ready access to a cash fund to cover everyday living expenses and unforeseen expenditure. Obviously, there’s no point rushing into investment if you’ve got substantial debts or if you know you’re going to have to make major financial commitments that will take up all your spare cash. A vital part of your financial planning must be providing adequately for retirement, not least because of the tax breaks available on pension contributions.

Define Your Goals

You need to be clear why you’re investing and what your goals are. The sort of life events that people often invest for include a child’s education, a daughter’s wedding, to repay a mortgage, retire at 55 – the list can be a long one. Knowing your time horizon helps ensure you put in place the right investment strategy for your needs.

Know Your Risk Profile

You will need to establish how much risk you’re comfortable with, and the impact that has on the rate of return you can realistically expect to earn. You should bear in mind that the level of return can vary from year to year, and that past performance is not a guide or a guarantee of future returns. The value of shares can go up and down.

Go For Diversity

A portfolio that includes a range of assets alongside shares, such as bonds, property, and cash, has been shown to perform better over the longer term than one that is only invested in one type of asset. This process is known as asset allocation, and is almost always the starting point when deciding where to invest.

Getting Investment Advice Makes Sense

We will be able to help you in a variety of ways. Firstly, we can work with you to review and assess your current situation, any existing holdings you may have, your family circumstances and tax position. Drawing on our expertise and extensive knowledge of the market, we will recommend the asset allocation that will meet your requirements, together with the investment options that are suitable for you.

While building a potentially profitable portfolio means taking a longer-term approach, we will want to schedule regular reviews with you so that your investments can, if necessary, be altered or rebalanced in response to economic and market forces.

 

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

It is important to take professional advice before making any decision relating to your personal finances. Information within this newsletter is based on our current understanding of taxation and can be subject to change in future. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK;
please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange mayhave an adverse effect on the value or price of an investment i n sterling
terms if it is denominated in a foreign currency. Taxation depends on individual circumstances as well as tax law and HMRC practice which can change.

The information contained within this newsletter is for information only purposes and does not constitute financial advice. The purpose of this newsletter is to provide technical and general guidance and should not be interpreted as a personal recommendation or advice.

A Game Of Endurance As Disposable Incomes Hit Six-Year Low

The average household in Britain is currently enduring the lengthiest dip in disposable income for six years. Cashstrapped consumers are struggling with the combination of lacklustre growth in their wages, which is providing modest support to disposable incomes, and inflation, which is taking its toll on the pound in their pocket as the cost of everyday items increase.

Recent data from the Office for National Statistics (ONS) revealed real household disposable income fell by 1.1% per head in the second quarter of 2017, meaning disposable incomes have declined for four consecutive quarters, marking the longest period of negative growth since the tail end of 2011.

The data from the ONS coincides with a study1 disclosing that for the first time in two years, households said they thought their personal financial situation had deteriorated. This perception will no doubt have a negative impact on people’s saving and spending habits.

It is anticipated that the interest rate rise in November could help temper rising inflation, which has been fuelled further by the Brexit-hit pound. Watch this space.

1Eurobarometer Consumer Survey, Oct 2017

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