Investment Advice

Investing is an effective way to put your money to work and potentially build wealth. Smart investing may allow your money to outpace inflation and increase in value.

The greater growth potential of investing is primarily due to the power of compounding and the risk-return trade-off.

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Set your goals

Reasons to Invest

Protect Your Purchasing Power
Grow Your Capital
Achieve Your Financial Goals
Earn More Than From a Savings Account
Diversify Your Income
Save for Retirement
Lower Taxable Income
Help Others Achieve Their Goals
Preserve or Grow

Understanding your risk appetite

Capital Preservation

Investors with this goal in mind typically want a low risk portfolio, maybe because the preservation of their money is more important to them than seeking growth. This can be attractive for investors solely focused on income, maybe in retirement, as low volatility and relative certainty of returns are high up the priority list.

Income and Capital Growth

The prospect of growth comes into the picture more here. Income producing assets like bonds might be joined by shares which pay dividends but also offer the chance of capital growth. Many investors used to bonds have felt the need to climb the risk scale into equity income since the financial crisis in 2008, as interest rates plummeted. Seeking a higher level of income than bonds can offer means accepting more risk in the stock market. But one of the advantages of equities is that companies can pay out part of their profits to you as dividends and keep some back to put back into the business. If they can demonstrate that, when the firm reinvests in itself it produces even better profits, you might actually not want a dividend, preferring them to put that money to work instead. This can be helpful if your goals mean you need to focus on the growth side, rather than income.

Capital Growth

These portfolios tend to be equity heavy. This can suit younger investors with a long timeframe, like in pension accounts. That long-term view is important in this case as short-term kinks tend to look less menacing and create more of an upward trend over time. As investors get nearer to their goals it can be a good idea to scale back the risk level here, to reduce the possibility of a sudden drop when it comes time to use those investment returns.

Pick what's best for you

Choosing an account:

Stocks & Shares ISA

A tax-efficient way to invest up to £20,000 per tax year

SIPP (Self-invested Personal Pension)

A flexible way to save for retirement with significant tax benefits

Junior Accounts

Invest for your child’s future with a Junior ISA or Junior SIPP

General Investment Account (GIA)

For anyone who has already used up their yearly tax allowances. This investment account has no limits and allows you to buy, sell and manage your portfolio outside of the tax efficient wrappers like ISAs and SIPPs

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Maximise your investments

Tax-efficient
Investment Accounts:

Stocks & Shares ISA

When comparing a GIA vs ISA, the main difference is tax. With an ISA account you can invest up to £20,000 each year without having to pay capital gains or UK dividend tax, so you can keep more of your returns.

SIPP Account

The major difference between a SIPP and a GIA is tax relief. A SIPP is a retirement account that lets you invest up to £40,000 each year (contributions above this level attract less tax relief). Any money you put in gets topped up according to which tax band your income falls into. But, you can only access it after a certain age, 55 at the moment but likely to rise to 57 soon.

Investment Advice FAQs

Frequently asked questions about investing:

What is the difference between a savings account and a GIA account?
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The question of saving vs investing is a common one. A savings account lets you keep your money in one spot, but you’re limited with what you can do. A general investment account gives you more control and choice, allowing you to invest your money into a range of options. You have a better chance of growing your money in a GIA account. But, your capital is also at risk if your chosen investments perform poorly.

What is the difference between a GIA and ISA account?
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The main difference between the GIA and ISA investment accounts is tax efficiency. Gains made in your general investment account may be subject to tax if you go over your yearly allowances. A stocks and shares ISA account protects your returns from tax, but you can only put in up to £20,000 during the current tax year.

What is an investment?
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An investment is something that you buy or put your money into, with the hope you'll make a profit on it over time.

What is the FSTE 100?
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The FTSE 100 is short for the Financial Times Stock Exchange 100. The 100 relates to the UK's companies that are listed on the London Stock Exchange. It's often seen as a good performance indicator.

What is inflation?
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Inflation  is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.

Have more questions?
Schedule a call with our Team

Risk Warning

The value of investments, and the income from them, may go down as well as up and investors may get back less than the amount originally invested.

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