Whether you are saving for particular purpose such as school fees or you just want to achieve better returns than that available from cash savings, investing your money in a well diversified investment portfolio will give you the best chance of achieving a good return.
Importance of Cash Savings
Everyone should try to have some money in cash savings as an emergency fund which you can draw on if you need to. We recommend working out how much money you would need to cover basic expenses such as rent or mortgage, bills and food for 3 to 6 months and aim to have at least that figure in cash. However with the poor interest rates payable for cash savings, holding large sums in cash means that the value of your savings will be erode over time, if the rate of interest payable of is less than inflation. If you put your money in a savings account, you’ll only earn the amount added by interest.
Understanding Risk and Return
Successful investing is all about managing the balance between risk and return. As financial advisers we work closely with you to help you understand what level of risk you feel comfortable taking with your investments and then we recommend an appropriate investment strategy. Generally the higher the return the higher the level of risk you need to take with your money. However investing is not all about high risk and chasing returns. The majority of our clients want to preserve their capital and take minimal risks to generate modest returns above that available from cash.
The recent financial crisis has shown that there are no “sure” things and there are also risks involved in holding large amounts of cash or investing in property. Wherever you put your money you can not eliminate risk – our philosophy is about helping to educate you about the different risks and options available for investing and mitigating the risks as far as possible through research, expertise and investment diversification.
Investment Accounts we can help with:
- Stocks and Shares ISAs
- General Investment Accounts
- Onshore and Offshore Bonds
- Venture Capital Trusts
- Enterprise Investment Schemes
How Aspect 8 can help
We can review any existing investments you hold and advise on the best place to invest your money to meet your objectives and attitude to risk.