Understanding your objectives
Putting some money on one side for a ‘rainy’ day or saving up for something special has always been a good idea, so long as you can afford to do it.
Creating an emergency fund in case the washing machine breaks down or the car needs a new exhaust is not very exciting but it does mean you don’t suddenly have to face an unexpected bill without too much anguish.
For such events you’re likely to keep your money in an easily accessible place like a bank or building society account, but if your savings objectives are a bit more ‘long term’ then you may look for a plan that will enable your money to grow a little more and maybe even offer some tax advantages along the way.
It could be that you aren’t saving for anything in particular and that you’re actually trying to generate an income from the funds you have already accumulated. In this situation, getting the best interest rate or level of income you can from your investment is probably what you would want to achieve.
Recommending the best options for you
Whatever your objectives for your savings, nowadays there are plans available to help you achieve them.
For example, you can now save up to £20,000 per year into a tax-efficient ISA, or Individual Savings Account. What’s more, these can be of a ‘cash’ type, which is really just like a bank/building society account, or they can be ‘investment’ based, which offer the chance to get a potentially better return over a longer term.
You can mix and match between the two types of ISA, so long as you don’t pay in more than £20,000 in total in any one tax year.
The investment-based ISAs do carry a greater level of risk, which means that the value can go up or down as they’re often related to the performance of shares on the Stock Market.
Before we make any recommendations regarding saving or investing money, we would aim to establish what is known as your Investor Risk Profile, in other words, what level of risk you can afford, or are prepared, to take in order to achieve your investment goals. We would do this with the help of a simple questionnaire, which we would explain to you in greater detail as appropriate.
Please Be Aware:
- ‘The value of investments and the income from them can fall as well as rise and past performance is not a guide to future performance’
- ‘You may get back less than you invested as investment returns are not guaranteed’
Cansquared Limited is an appointed representative of Network Direct Ltd who are authorised and regulated by the Financial Conduct Authority. FRN 501761. Cansquared Limited is registered in England and Wales No. 8452816. Registered office: 24 Old Mill Ridge, Wadsworth, Hebden Bridge, West Yorkshire HX7 8RT