With even the best saving accounts struggling to offer much more than 1% interest and inflation running at around 3%, putting money in a savings account means watching the real value fall much faster than the interest can push it up.
But there is an alternative way to make your money grow, At Continuum we are looking at getting started as a young investor.
Are your savings wasting?
If you are disappointed by low returns on saving, investment may be the answer for you. To find out more with a free initial consultation, contact us now.
You are best starting young
The younger you are when you start investing, the better off you can be, for two very good reasons.
- The first is the wonder of potential compound growth. The longer your investment has to potentially grow, the more growth it could accumulate, and the more time the investment has, the growth it earns can work for you by earning more growth itself.
- The second is that because you have more time for your investment to potentially grow, you may consider accepting a level of risk, (which would be in line with your attitude to investment risk,) with your investment which may produce higher growth, because investments fluctuate in value the more time you have to be invested the more likely it is that you may make up any losses.
When you put cash into a savings account, it stays as cash. It is safe. You will also know exactly how much interest you will earn.
The problem is in the current market you will not earn very much.
Investments mean some risk. Their value can fall as well as rise, and if a business fails, you could lose your money. But in return for the risk, you could make more than savings will offer, because returns are not limited by interest rates.
The promise of investing is simple. It can help you build your wealth.
Successful investment is never just looking around for a bargain when you have some spare cash. It always requires careful planning.
You should look at what your financial goals are, and when you want to achieve them. Then, with some help from a Continuum financial expert, it should be possible to create an investment plan.
So, if you are a young investor, one of your first priorities may be to own your own home, which means a large deposit will be necessary. Building a lump sum quickly to provide this may be your priority.
A sound basis for most people’s investment is a Stocks and Shares ISA, which gives you the potential growth of the stock market with the added benefit of being tax efficient helping your investment to potentially grow faster.
You may consider a Lifetime ISA, which can help you build up a lump sum for a deposit for a house quicker, because it attracts a government bonus of 25%. You might be able to have both a Lifetime ISA and a regular ISA. But – whatever your investment plan -you should definitely start the habit of investing regularly. The money you invest now as you are starting out could have decades to grow.
What about a pension?
If you are in your twenties, you may think it is too early to start thinking about retirement, which could be forty or – with rising retirement ages – even fifty years away. But the fact is that the sooner you start, the easier it is to save the money you want.
Thanks to the very attractive tax relief provided by the government, a personal pension plan could easily be the most rewarding investment you ever make. The power of compound growth and skilled investment make it more rewarding still.
Expert financial help
Getting expert financial help can make investing very simple – and much more rewarding. To start seeing what investment could do for you, call us now.
Investing can be simple
You don’t have to be an investment expert to succeed at investing. Some knowledge is no bad thing, but you can simply invest in a fund which will get an investment manager to provide all the expertise you need.
At Continuum, we can help you create a plan to make the most of your investments and your pension, whatever your age.
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable investment strategy, you should seek independent financial advice before embarking on any course of action.
Equity investments do not afford the same capital security as deposit accounts.
When investing your capital is at risk.
The Financial Conduct Authority does not regulate deposit accounts.