investments
Putting your money to work
Stage Financial are well versed across a wide variety of investment options to guide you on your best choices.
Investing and saving, two different ways to give you financial security and hopefully growth. I advise clients, depending on their specific needs and circumstances, on which route is best for them and then get into advising on the most suitable savings and/or investment schemes.
Savings or investments - which is best?
Saving is a good way to start your financial journey, it’s a lot less risky than investing and there are a large number of saving accounts and options on the market. Stage Financial’s advice would be that you should not start investing before you have started saving.
With investing there are risks involved, there are no guaranteed returns and the money you initially invest could also be at risk, but of course, the rewards are greater.
Which route is down to your own personal circumstances and appetite for risk, but I do strongly advise you not to invest if you are not saving.
Your scale of risk
Offering personalised financial advice means that I need to understand your level of risk. To help me figure out the best investment options to recommend I ask clients to fill in a seven-point questionnaire that when completed puts on the risk scale.
Investments for first timers
The list of investment options is infinite, but these are the most common and are a good way to dip your toe into the investment pool. Below is a brief overview of the top six, the details would be discussed in our consultation.
Equities
An equity investment is money that is invested in a company by purchasing shares of that company in the stock market. These shares are typically traded on a stock exchange.
Usually, the return on your investment is greater than bank accounts and bonds, as you might receive a dividend (your share of the company’s profits) and a capital gain. This occurs if the price of your shares increases, but this is only an ‘on paper’ increase.
National Savings Products
These are great if you are completely risk averse. These investments raise money for the UK government, they include National Savings Bank accounts, savings and Income Bonds. They
are backed by H.M. Treasury, making them the most secure investment option available.
Please note, National Savings products are not regulated by the Financial Conduct Authority.
ISAs
Individual Savings Accounts in full. Think of it as a tax efficient box where you place your money in equities, bonds and collectives. There are some rules on who can open an ISA, but in general if you are over 16 you can open a cash ISA and a stocks and shares ISA if you’re 18 or over.
These are great for new savers as they are tax-efficient and normally give good returns, plus the minimum investment is low and no minimum period of investment. ISAs are also attractive as all the gains you make are tax free.
There are rules on how many ISAs you can open and you can choose whether you put your money in cash and or stocks & shares; the amount you can invest is subject to change, based on the Government’s Budget guidelines.
If this is an attractive option to you, I can go into more detail on transfers and allowances.
Please note, For ISA’s Investors do not pay any personal tax on income or gains but ISAs do pay unrecoverable tax on income from stocks and shares received by the ISA Manager . Tax treatment varies according to individual circumstances and is subject to change.
Junior ISAs
Parents and guardians can set up these tax-efficient accounts for children under 18 years of age. Parents and guardians add the money to the Junior ISA but only the child/children can access the money.
The limit you can invest is currently £9,000 per annum but this is subject to change. Like other ISAs you don’t pay tax on any gains you make. There are different types, stocks, shares or both, which one is right for your child is something I can advise you on.
Let's Talk!
The best way to get started with your financial investments is for us to speak. I will give you an honest evaluation of how I could help you choose the investments right for you.
Due to my tailored approach, I am unable to offer generic advice. I am happy to have an initial conversation to demonstrate how I could help get your financial investment strategy in place to help you achieve your goals.
Disclaimer
- The value of pensions and investments and the income they produce can fall as well as rise. Therefore, you may get back less than you invested.
- Tax treatment varies according to individual circumstances and is subject to change.
- The Financial Conduct Authority does not regulate advice on estate planning and some forms of taxation.