Savings & Investments
The right investments can help to ensure your future or current financial security (capital and income), and protect against inflation. We can consider all available funds and, with our experience and knowledge help to construct an appropriate and effective investment portfolio.
Investment & Savings Advice
For whatever reason you need to invest, whether for immediate or later income, towards a large future purchase, for school fees etc, we can help you to build an appropriate investment portfolio.
Why do I need to invest?
'Investing' simply means putting money to one side that is to be used at a later date in the hope that it will then have a greater value (either for you or your descendants), or using money to generate a better return now, in the form of income or capital withdrawals to support your lifestyle. This may be for a specific need such as retirement or school fees or simply because you want to.
There are many different forms of investment ranging from simple cash savings accounts through to highly complex plans such as self-invested personal pensions (SIPPs) AIM listed ISA portfolios and many in between.
How our advice may help you
We cannot promise to make you the most money. If we could do that we wouldn't need clients! However, our advice and guidance should help to ensure that you only have investments that are suitable to your circumstances and requirements. This includes having a portfolio with an appropriate level of risk that you can tolerate and that is suitable in terms of tax planning.
Helping you with your Portfolio
The various assets owned by an investor are called a portfolio. As a general rule, spreading your money between the different types of asset classes helps lower the risk of your overall portfolio under performing.
There are many different types of investments available and it is not possible to detail them all here but below we have provided a summary and those that are suitable for many clients either in isolation or in combination but note there are many others that we may also use from time to time.
Decisions that are made today can have an impact on your retirement income and lifestyle, so it's important to get the right advice. That's where we can help.
Individual Savings Accounts (ISAs)
You can save tax-free with Individual Savings Accounts (ISAs).
In the 2021 to 2022 tax year, the maximum you can save in ISAs is £20,000
There are a number of different types of ISAs, shown below:
- Cash ISAs
- Stocks and Shares ISAs
- Innovative Finance ISAs
- Lifetime ISAs
Each tax year you can put money into one of each of the above kinds of ISAs if required. The tax year runs from 6 April to 5 April.
You can save up to £20,000 in one type of account or split the allowance across 2 or 3 types (be aware that the Lifetime ISA has a lower subscription limit within the overall £20,000 limit).
Junior ISA or “JISA” (under 18s)
This is a separate ISA for under 18s who don't hold a Child Trust Fund (CTF). A child with a CTF may choose a JISA instead if they first transfer their CTF funds to a JISA and close the CTF. The maximum subscription in 2021/22 is £9,000 (CTF or JISA).
A unit trust may reduce your risk of investing in the stock market by pooling your savings with thousands of others, and then spreading the money across a wide range of shares or other types of investment.
Open Ended Investment Companies were introduced from Europe into the UK in 1997. Open-ended means shares in the fund will be created as investors invest and cancelled as they cash in.
OEIC's quote a single price, and a levy which shows the costs of buying/selling.
Investment Trusts are companies that buy and sell shares in other companies. When you invest in an investment trust company, you become a shareholder of that company. Your shares will rise and fall in value according to supply and demand for the shares.
Unlike a Unit Trust and an OEIC, the number of shares within an investment trust is limited (there are only so many that can be bought and sold at any time). This means that as well as being influenced by the value of the assets held by the Investment Trust, their price is determined by investor demand, rising with popularity, and vice versa. This means that a share in an Investment Trust can be more expensive than the total costs of the relative assets in the investment: this is called trading “at a premium”. If the reverse is true, it is said to be trading “at a discount”. This adds another layer of risk for investors in an Investment Trust, but can also create buying opportunities.
These are treated as a form of insurance policy so can attract certain tax advantages. They can be useful when used by/for trusts and when associated with certain types of Inheritance Tax planning.
The value of investments and income from them may go down. You may not get back the original amount invested.
Tax treatment depends on the individual circumstances of each client and may be subject to change in future.