Taking a more diverse approach to asset allocation
Investment trusts are a well-established way of investing. Many investors prefer to invest in a fund rather than by picking individual stocks, shares or other assets. Funds allow you to diversify your portfolio easily, as well as giving you the chance to benefit from the expertise of fund managers.
Investing through a tax-efficient wrapper, such as an Individual Savings Account (ISA), can give a significant boost to an overall investment portfolio, but they should be blended with an appropriate investment strategy to give the best outcome.
Structuring your investment portfolio throughout life
If low interest rates continue to remain, it really matters where you invest your money. Investing for income means choosing assets that are able to provide you with a regular income. This is in contrast to investing for growth, which focuses on how much your assets could gain in value.
Staying disciplined and sticking to your plan is key
The overall direction of developed stock markets is a relentless and continual rise in value over the very long term, punctuated by falls. It’s important not to let global uncertainties affect your financial planning for the years ahead. Individuals who stop their investment planning, particularly during market downturns, can often miss out on opportunities to invest at lower prices.
Asset allocation depends on your goals, your attitude to risk, your capacity for loss and market conditions. Understanding investment risk and determining what level of risk you feel comfortable with before you invest is an important part of the investment-decision process. Potential returns available from different kinds of investment, and the risks involved, change over time as a result of economic, political and regulatory developments, as well as a host of other factors.
The impact of inflation on savings and investments, especially of those retirees living on a fixed income, is an important issue. But it’s also not good news for other savers and investors, as it can erode the purchasing power of money.
At this time of year, we think about New Year’s resolutions, and it’s also a good time to start planning our tax affairs before the end of the tax year on 5 April. As you think about 2019 and your goals for the coming year, we can help to start you off on the right financial footing. It’s well worth spending some time in January to think about your money so you can achieve your goals as quickly as possible.
The end of the tax year on 5 April is fast approaching, so make sure you’ve made the most of your annual allowances before it’s too late. No matter what, why or how you want to save and invest, an Individual Savings Account (ISA) could help make your money work harder for you.
Treasury enjoying a tax bonanza from pension withdrawals
Following changes introduced in April 2015, you now have more choice and flexibility than ever before over how and when you can take money from your pension pot.
Building up your nest egg is more discipline than difficult
For today’s retirees, retirement has changed almost beyond recognition since their parents’ day. Building a retirement fund requires saving enough money to pay your bills and continue living comfortably when you are no longer drawing an income.
