First steps on the investment ladder
Carl Lamb on the benefits of taking independent financial advice when putting money into stocks and shares
It’s been a long while since interest rates on cash savings were higher than the rate of inflation. As a result we are finding that more and more people are looking to the stock market to deliver a better return on the money they want to put aside for their future needs.
Investing is a serious business; putting an investment portfolio together is not something that you can do in an instant. There’s a long list of factors to take into account and it is always a good idea to get independent advice before committing your money to any particular route.
It’s important to make sure that any adviser you consult is authorised and regulated by the Financial Conduct Authority (FCA) as that will ensure firstly that the adviser has reached minimum standards of qualification and secondly that you have recourse to the services of the Financial Ombudsman and the Financial Services Compensation Scheme if things go wrong.
The fact is that investing in stocks, shares and investment funds does involve risk. When we use our risk warnings at the bottom of articles, it’s not just to tick a box.
It’s absolutely imperative that anyone who takes on investments understands that there is no guarantee of a positive return and that there is a danger that you could lose some or all of the money you have invested.
Having made the point about the potential for losing money, it is possible to make higher than inflation returns on your money through investments, but there are no guarantees. It’s important to bear in mind that your portfolio may go up and down over time so any investment strategy you put together must take into account any points in time when you will need to capitalise your investments, perhaps moving funds into those in a lower risk category as the point of need approaches.
There’s a myriad of different types of investments we could recommend and as Independent Financial Advisers, we’ll consider options from the whole of the market. Anything we recommend will have been approved by our investment committee which ensures that we only work with best of breed fund and product providers.
The value of an investment and the income from it could go down as well as up. The return at the end of the investment period is not guaranteed and you may get back less than you originally invested. The tax treatment of investments depends on individual circumstances and is subject to change.
For independent advice, contact Almary Green on 01603 706740 or email en[email protected]marygreen.com. Please remember that the guidance here is generic and we recommend that you get individual personalised advice. almarygreen.com
ABOVE:Good investment decisions can help your money grow, but it does involve risk