Investments

Planning for the future often means finding a balance between savings and investments.

You may be saving for your children's future education costs, looking to generate income from your capital or make provisions for retirement.

Whatever your reason for regularly saving or investing, Aberdein Considine can help make sure you are making the most of the options available.

Finding the right strategy for you

In the current economic climate, with interest rates still around record lows, investing in stock markets could enable you to achieve an inflation-beating return and help you reach your long-term financial goals.

Investing can take many forms, but most people choose from four main types of investment, known as 'asset classes':

• Cash - the savings you put in a bank or building society account
• Fixed interest securities (also called 'bonds') - you loan your money to a company or government
• Shares - you buy a stake in a company
• Property - you invest in either a commercial or residential building

There are also other higher-risk types of investments available too, including:

• Commodities like oil, coffee, corn, rubber or gold
• Foreign currency
• Contracts for difference, where you bet on shares gaining or losing value
• Collectables like art, antiques and vintage wines

The right savings or investments for you will depend on how prepared you are to take risks, your current finances and future goals.

Investment returns

Your choice of investment will dictate how you receive returns. It is important to think about this as there may be tax consequences.

Depending on where you put your money, your returns could be paid in a number of different ways:

• Interest - from cash deposits and fixed interest securities
• Dividends - from shares
• Rent - from properties
• Capital gains or losses - the difference between the price you pay and sell for

Our independent financial advisers will guide you in the right direction.

Spreading the risk

Understanding the risks you'll encounter when investing, and deciding how much risk you are willing to take, is fundamental.

Our independent financial advisers will help you understand where the risks lie and, if you wish, help you 'spread' your risk.

Diversifying by putting your money into a number of different products and asset classes is one way to reduce risk, so if one investment doesn't work out as you'd planned, you've still got exposure to others.

Speak to an expert for investment advice

If you would like to speak to one of our independent financial advisers about your investment strategy, click here.

Note: Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change. The value of investments and income from them may go down. You may not get back the original amount invested. Past performance is not a reliable indicator of future performance.