There are a multitude of reasons why someone would engage in savings & investment planning. Some examples of specific objectives are your own, or a child’s, future wedding, private school fee or university fee planning, repayment of an interest only mortgage or part of a holistic approach towards retirement planning.

When presented with the opportunity to invest either a regular monthly / annual amount out of income or a one off lump sum from accrued capital, there are a substantial number of options available. Equally there is a similar degree of choice when it comes to a company investing out of ongoing or retained profit. So much so that the easiest thing to do is to do nothing, leaving it simply to sit in what is often, particularly in the current climate, a low interest bearing bank or building society account or worse a nil interest bearing current account.

Whilst cash can offer some benefits to investors, and indeed regularly plays a part to a lesser or greater extent in our clients’ portfolios, as a long term strategy this could be considered detrimental.

There are a number of factors that need to be considered when considering an alternative investment: –

What is your objective and when might you need the funds?

This will revolve around whether the investment is for income or growth, whether access is required, how long am I prepared to invest for and perhaps whether more complex planning is involved, typically Income Tax, Capital Gains Tax (CGT) or Inheritance Tax (IHT) Planning.

What is your attitude to investment risk?

How risk averse are you and what is your view of volatility? How do you feel about your money reducing in value at times?

What investment vehicle/wrapper is the most appropriate for my circumstances?

You may clearly be able to answer and elaborate on the first issue. However, with regards to investment risk and to which type of medium you should invest through, these are not so easily determinable. We consider this to be an area where professional and independent financial advice is imperative.

Not only is advice important at the outset but also on an ongoing basis. It is crucial to monitor and review and form of investment to ensure it remains on track to meet your objectives and remains wholly appropriate to your continuing tolerance to investment risk, which often changes depending on personal circumstances, the timeframe involved and of course with age.

Our advice is tailored specifically to individual circumstances but covers a broad range of investment options such as cash deposit accounts, unit trusts, open ended investment companies (OEICs), Individual Savings Accounts (ISAs), structured products, onshore & offshore single premium investment bonds, Venture Capital Trusts (VCTs) and Enterprise Investment Schemes (EISs).

The use of a variety of investment related trusts can be considered where specific tax planning needs dictate.

We would welcome the opportunity to discuss investment planning opportunities with you. Contact us now for a free informal chat.