MONEY MATTERS
INVESTING
The world of investments can be a tricky one to navigate, so Lisa de Silva has shed some light on some potential options with her very accessible, easy to understand, handy guide to investing
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ith low interest rates and rising inflation, many people are looking at ways to make their savings work harder for them. Traditionally, money invested in shares has outperformed money in savings accounts, making investments an attractive proposition. Yet, investments do not offer a guaranteed return and to get the best returns you must take the greatest risks. Those tempted would be wise to consider the following: What are your investment goals? If you are nearing retirement, it wouldn’t be wise to expose your savings to huge risk. How long are you happy to tie up your money? Are you prepared to stay in for a minimum of five years and accept the ups and downs of the markets? Can you afford to lose your money? Will you create and manage your investment portfolio yourself or will you use a professional?
SHARES Companies issue shares to raise money. Investors buy them in ISAs the hope that (INDIVIDUAL the company SAVINGS performs well, ACCOUNT) and the shares A good place increase in to start an value. You can investment make money journey is with an when the share ISA. All adults have price increases and a £20,000 annual ISA when the company allowance, which means pays dividends. you can invest up to this Dividends are paid amount in any tax year from any profits the A good place to and pay no tax on any company makes. Shares start an investment gains you make. You are traded on the stock journey is with an ISA exchange and prices can save into a stocks and shares ISA, keep reflect the overall emergency money in a cash ISA or if economic climate, social and global saving for your first home, a Lifetime trends, along with a specific company’s ISA, which benefits from additional financial health. Prices can go up and government contributions. down and the risk level is high. Are you aware of the fees involved for the different buying and selling platforms?
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