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Investments explained.
Capital sums for investing are acquired in many ways. These include
inheritance, maturing savings policies, windfalls and proceeds from many years
of saving. Investment types & requirements can be divided into short and long term needs.
Short term investment needs.
These include saving for a car or a holiday. The most suitable investment
type is usually a deposit account such as a bank or building society account.
Long term investment needs.
These can be saving for retirement, school fees or providing capital for children as they grow up.
You may wish to consider savings other than bank deposit accounts for longer term needs.
Whatever the investment type, you'll need to consider a number of
important factors including ease of access to funds, charges and any tax
implications.
The different types of UK investments.
A brief explanation of the different types of UK investments
available is given below, please follow the links for more
information.
Individual Savings Accounts (ISAs).
Individuals will have an annual
ISA Allowance set by the
Treasury. Each year the Individual Savings account currently allows you to invest up to
£7,200 a year tax efficiently. more >>
Investment Trusts.
Investment Trusts are companies that buy and sell shares in other companies.
When you invest in an investment trust company, you become a shareholder of that company. Your shares will rise and fall in value according to supply and demand for the shares.
more >>
Unit Trusts.
A unit trust reduces your risk of investing in the stock market by pooling your savings with thousands of others, and then spreading the money across a wide range of shares or other types of investment.
more >>
OEICs.
Open ended investment companies were introduced into the UK in 1997, from Europe.
Open-ended means shares in the fund will be created as investors
invest and cancelled as they cash in.
more >>
Endowments Policies.
An endowment policy is a savings and life assurance policy for an agreed period. The minimum period is 10 years.
A tax free benefit is normally paid out at maturity or on
earlier death. more >>
Investment Bonds.
An investment bond is in fact a whole of life policy usually paid for with a lump sum (or single premium). Proceeds can be taxable if the investor is a higher rate taxpayer and may also be taxable for lower rate taxpayers.
more >>
Annuities.
A conventional annuity is a contract whereby the insurance company agrees to pay to the investor a guaranteed income either for a specific period or for the rest of his or her life in return for a capital sum.
more >>
Please contact us to
discuss your investment requirements, we'll be pleased to help you
and explain the different investment options.
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