Whether you have a lump sum to invest or want to save regularly through a retirement or savings plan it is important to set yourself a goal and clearly identify your expectations.
There are a huge number of choices open to you as to where you might invest your money and it is vital that you understand how these options fit in with your own attitude to investing.
Perhaps the first and most important issue is that you will need to get clear in your own mind is whether you are a saver or investor.
Typically we would characterize a client as a saver if they tell us that:
• It is critical that their capital is preserved at all times – regardless of movements in investment markets.
• Ideally they would like to see an increase in the value of their investment from year to year.
• They are prepared to accept the fact that capital guarantees are likely to produce modest deposit type returns from year to year.
• They would like to have reasonable access to monies should a need arise.
These criteria generally result in monies being placed in cash deposit, capital guaranteed bonds or fixed interest funds.
Investors on the other hand tend to:
• Accept some element of risk to their capital.
• Understand that returns will fluctuate from year to year to reflect changes in the investment markets.
• Hope to achieve returns over rolling 3-5 year periods which will be ahead of equivalent returns from deposit type investments.
Typically this will mean investing in assets such as equities, unit funds and or property.
A key part of our service is helping clients to identify where they fit into these categories, in many instances they are savers for a large proportion of their funds and investors on the balance.
If you would like to find out more or discuss your options with us, please give one of our team a call on 0404 67123 – we’re happy to help.