Investment

Savings

The type of saving that you do will depend on whether or not you are making regular savings, lump sum savings, pension savings, non-pension linked savings and whether or not you are looking to save for the short, medium or longer term.

The principles of investment apply whether you are talking about savings or pensions and people have a tendency to make the mistake of taking short term views when they are dealing with their medium and long term savings or their pensions.

Many people do not realise that there is a relationship between time and risk, in the same way that there is a relationship between risk and reward.  The more risk you take the more reward you stand to gain (or lose), whilst the longer you can leave the investment alone, the less risk is attached to it and vice versa.

Choosing The Right Investment For You

“It is always wise to remember that a profit is not a profit and a loss is not a loss unless you actually sell.”

At the same time, it is useful to ensure that not all your “eggs are in one basket” and that a range of different types of investment are made.  Usually, a portfolio of investments is constructed so that it will give good performance but is not too reliant on any one sector.  A good portfolio will normally include assets that have a low correlation with each other to reduce volatility.  Low correlating assets are those which will not necessarily move in the same direction (i.e. up or down) for the same economic reasons.

Any help we provide to you will take these issues into account and we will assess your attitude to risk and capacity for loss prior to making any recommendations for you.

There are a large number of options available for longer term savings including, but not limited to, Individual Savings Accounts (ISA’s), Unit Trusts, Open Ended Investment Companies (OEIC’s) and Insurance Bonds.

We would look at all of the options available to you prior to making any investment recommendations to you which would always be in writing.

Savings Plan

Your plan for your savings could (and should) be reviewed each year to make sure they remained suited to your needs and attitude to risk should you decide that you wish to use our ongoing services for reviews and maintenance of your financial plan.