Savings & Investment
Why does anyone save? The answer can seem obvious but people save for many different reasons. You may need the money in the future either for something you want to buy, or to cover the unexpected, or for when you are too old or ill to work. You may need to plan for school or university fees for children or grandchildren. Savings planning can be broadly split into short term and long term.
Examples of short term saving would be for a car or a holiday. In these cases the most suitable investment is usually a deposit savings account. Deposit savings accounts are available in every bank or building society and are sometimes referred to as a "current account".
Longer term needs might include saving for retirement, school fees or for providing for children as they grow up. When you put money aside over a longer term you are like to consider a wider range of investment vehicles, which means that there are more issues to consider, such as how easy it would be to get at your money and how much you can afford to commit on a regular basis. Due to the effect of inflation it is also necessary to consider the impact of inflation, taxation and charges on the ability of your money to grow. This is particularly true when considering the investment of lump sums. Too many people invest inappropriately simply because their correct attitude to risk hasn’t been properly established and as a result their expectations are unrealistic. For example, if you wake in a cold sweat at the thought of an investment even slightly falling in value you clearly shouldn’t be investing a significant proportion of you money in stocks and shares. Equally, if you want to see your investment grow at well above the rate of inflation you should probably be looking beyond cash deposits.
There is no "one size fits all" answer to people’s savings and investment needs. We see people as individuals and advise them accordingly.
