07:41 27 January 2014
There are a variety of ways you could go about choosing a savings or investment plan. You need to be guided by your current situation and match that to your long term financial goals. There are various plans that are available to help you save or invest your money. You need to familiarise with what different financial institutions have to offer and choose the plan that will suit you.
Here are the types of savings and investment plans you can choose from:
Individual Savings Account
This is a high-interest rate and tax-free plan available as cash (Cash ISA) or stocks and shares (Stocks and Shares ISA). This is the easiest savings plan and one that has the least risk.
Pensions and retirement plans
It is never too early to start planning for your twilight years when you are no longer able to earn an income to support yourself. Pension and retirement plan payouts are only available when you reach a certain age. Make sure you read the documents before putting your name on the dotted line.
If you have a lump sum of money that you can afford to put away then bonds are best. They are high risk but have a considerably high interest rate than your normal savings plans.
This is a complex way of investing money and it also attracts taxes on gains you make. It might be better to look out for an experienced professional, and employ the services of a financial broker to handle such an investment.
If you are not a risk taker and simply want a plan that will keep your money safe until the time you need it then investment strategies that do not involve the trading of stocks and bonds are much safer for you. When in doubt seek the help of a financial adviser who will navigate the investment world for you and invest your money where it is most suitable.