Savings & investments

Putting your eggs into more than
one basket…

Savings & Investments

The current economic climate

We would all prefer to see our money grow. However, in the current economic environment, this poses more of a challenge than ever. Current rates of inflation erode the value of savings and generating a real rate of return with interest rates at historical lows, makes things all the more difficult.

The importance of planning

Investing for long-term financial success is a disciplined process which involves careful planning, diversified portfolios which consider your appetite for risk and ongoing reviews. So whether you’re saving for a holiday, toward a deposit on a house, school fees or for those rainy days, having a goal and putting a financial plan in place to help achieve it is very important.

Assessing your attitude to risk

When planning your savings and investments, it’s important to consider what level of risk you are prepared to take with your money, which is known as your attitude to risk.

The lower the risk usually means the less likely you are to lose your initial investment, however the return you get will often be quite low. High risk investments, as you’ve probably guessed, are the opposite to this. There is a higher risk of losing your money but there is more potential for a higher return.

Your attitude to risk can be influenced by a number of factors such as your age (for example, are you close to retirement?), your financial goals, your financial commitments and how much money you have. Your overall investment strategy could be made up of a number of separate investments at different levels of risk, with the overall outcome of spreading your risk whilst aiming for the growth or income you require - effectively not putting all your eggs all in one basket.

How we can help

Here at Oakleaf, we can help you decide whether you need to save or invest, how much, for how long and into what. We build diversified portfolios, using the latest technology and academic research, ensuring tax efficiency, low costs and investment into funds which suit your attitude to risk.

Questions you may wish to ask us

Below are a few more questions you may wish to ask us to answer or advise you on:

  • How much money can I invest into my stocks and shares NISA?
  • Which investments produce a tax free return?
  • What does inflation do to value of my investments?
  • How can I generate an income from my investments?
  • How much do I need to save each month to reach my goal?
  • What is a Wrap?
  • What’s the difference between direct investment and a collective investment?
  • What is an OEIC?
  • Can I invest in gold?
  • How much can I afford to invest?
  • How long can I afford to be without the money I’ve invested? (Most investment products should be held for at least five years, but often this could be significantly longer.)
  • What can my investment provide – capital growth (your original investment to increase), income or both?
  • How much risk and what sort of risk should I be prepared to take?
  • Am I able to bear the loss of some or all of the investment if it performs badly?
  • Should I invest alone or with others?
  • What tax will I pay and can I reduce it?
  • What fees are associated with the investment?

The value of investments and the income from them may go down. You may not get the original amount invested.