Investments
Investments and Pensions
Investments & Pensions
An income investor is one who invests in order to generate an income, rather than for capital gain as a growth investor might. An income investor would usually invest in bonds, high yielding shares, gilts and some dividend baring equities.
A Growth investor: is one who is seeking to grow the asset value or the capital invested, and may use a wide range of assets to achieve this including; equities, property, cash, corporate bonds, shares of individual companies.
A lesser risked approach of pooled/collective investments through OEIC's , Unit Trusts, Investment Trusts, Life bonds, Structured products and some guaranteed plans.
If you have a large sum to invest, a financial adviser should be able to narrow the vast choice down for you and choose a selection of funds /assets that fit together.
However, even if you are just starting out and making small investments there is a wealth of information to consider the internet can show how funds have performed and what they invest in. Individual fund management house websites also provide much detail to help, the advantage of using an experienced financial advisor with the decision, is that you will be afforded, some safe guards like Financial Services Compensation Scheme (FSCS). Financial Advisors are A REGULATED BODY via the FSA.
One more point to consider is how you put the money into the investments. Most funds allow
you to make regular investments, drip feeding your money into the market, although this is
not usually an option with guaranteed equity bonds.
The principal advantages of regular investments is that you can do so even if you don't have a
lump sum, and putting money into the market over time means you don't buy when the price
per unit may be high. This is known as Pound cost averaging and has the effect of distributing
a regular payment drawn from capital and enters the market at different values and aims to
smooth out the fluctuations over time.
"Regular savings are also flexible in that you can stop and start them when you like and
increase and decrease the amounts you save," Key is however advice is.
Pensions are a key part of anybodies planning and have a number of advantages not least Tax
Relief.
You'll need to think about how you'll manage financially when you retire. The State Pension is a good foundation but it may not be enough to pay for all the things you want in retirement. It pays to plan ahead and review your plans regularly.
Existing plans are they doing what you expect, when did you last have them reviewed, what
are they invested in.
A pension is not the only option, though. There are many other ways to build up money for the long term, including savings accounts, ISAs and a range of other types of investments.
Many people choose to invest in property. Each type of savings and investment works differently and has its own pros and cons.