Investing in your future…
It is important to distinguish between savings and investments. Savings are money which is put to one side, often on a regular basis, for short-term purposes, such as the purchase of a car or a holiday, or as an emergency fund. Investments are sums of money which have been put aside for the longer-term, usually at least 5 years.
However, just to confuse matters, the phrase “regular savings plan” is used to describe a formal plan into which a specific amount is regularly paid, normally monthly, and which is designed to continue for at least ten years! These are often used to provide lump sums for children, for example when they reach 18 or 21, or to provide for payment of university fees and we can advise on which may be most suitable for you.
Most savings are held in various types of bank or building society accounts, including tax-free cash Individual Savings Plans (ISA).
Investments are generally held with one of two objectives in mind – either to grow in value or to provide income (or possibly a bit of both) and can be held in a wide variety of different investment vehicles.