Savings and Investments
There are many different types of savings and investments and therefore, we believe it is always best to seek advice.
Options include National Savings or Deposit accounts with banks and building societies. Whilst returns are often low they provide stable and is some cases tax free growth.
Individual Savings Accounts (ISA’s)
ISA’s represent a tax-efficient container allowing you to invest in cash, equities and bonds and offer the potential for tax efficient growth
Equities
Equity investments (investing in the shares of companies listed on the Stock Exchange) involve a higher level of risk when compared with Cash or Collectives. However, they offer the upside possibility that Cash and National Savings products do not. You have the possibility of gaining not only a dividend but if the price of the share goes up after you buy them you will also make a capital gain.
The risk involved with this investment is that the value of shares can go down as well as up,which means you risk losing your capital if the price falls.
Collectives
Collective investments such as Unit Trusts and Investment Trusts allow you to spread your investments by buying a basket of shares in different companies. In the case of Unit Trusts you buy units in a fund. The investor relies on the skills of the fund manager to achieve growth. Collectives can include Equity or Fixed Interest investments.
Before investing in any of the above mentioned financial instruments, we recommend that you seek advice designed to ensure that the products are suited to your needs and attitude to risk.
Corporate Investments
If your company is trading profitably you may have capital sitting in the bank that is earning little in terms of interest and nothing for capital growth.
It may make sense to hold a reasonable amount on deposit and to invest any surplus into suitable investments to achieve the potential for better returns and a reduction in corporation tax.
We offer advice on all the areas above and their suitability for your particular circumstances.