Investments to make in 2016
Investing isn't just for high earners, most investment funds will accept monthly deposits of £50 or lump sums of between £500 and £100. There are tax advantages in investing but you should be prepared to tie up your money for at least 5 years.
Investors will need to choose carefully for 2016, then monitor investments closely. Uncertain global conditions are making absolute return funds more popular at the moment.
Over the long term, stock market investment tends to produce better returns, despite this savers stick to cash accounts as they are often reluctant to make the jump to investing in stocks and shares because of the fear of losses.
How to tilt the odds in your favour
You need hold your nerve when stock markets swing wildly up, rather than panic and sell. Over the long term losses tend to be recovered. Volatility should be viewed as the price investors pay for shares' long-term out performance.
There are ways to tilt the odds of investment success in your favour:
- Invest for the long term
- Invest monthly, rather than try to time the market
- Reinvest your dividends unless you need the income
- Diversify, don't put all your eggs in one basket
- Rebalance, some of your investments will perform better than others
Investments managed by an adviser
We can help you with a portfolio where you invest in shares, bonds and other assets across a range of countries helping to dilute the risk whilst improving the chances of investing in the right places.
Invest in funds
Stocks & Shares ISA
Shelter up to £15,240 from tax with a low-cost, easy to manage ISA.
Investment Fund Account
If you've used up your ISA annual allowance of £15,240 for the tax year, you can use an investment fund account for any additional investments you'd like to make.
An investment fund account keeps all your investments in one place so you can keep track of them more easily.
Anyone over the age of 18 and resident in the UK can open an investment fund account.
Hold funds in a pension for your retirement and get tax relief on contributions.
We can advise you to which funds have a consistent performance and explain about the risks.
The new Lifetime ISA
It was announced in the Budget (16th March 2016) that adults under 40 will be able to use a new Individual Savings Account (Isa) to buy a home or a pension from April 2017,and savers will receive a 25% bonus from the government.
They will be able to put in up to £4,000 a year, with the annual bonus of up to £1,000 paid until the age of 50.And from April 2017 all savers will be able to put up to £20,000 a year into Isas, up from £15,240 at the moment.
So it will be possible to have both a standard and a Lifetime Isa, subject to the £20,000 limit.Whilst higher rate income tax rate will be increased to £45,000 in 2017.
The new Lifetime ISA could be a good way to supplement the existing pension system, and will be particularly attractive to self-employed people, who have been left behind by the private pension system.
The new Lifetime ISA announced in the Budget - available from April 2017
Government's new help to save scheme
The government has announced details of a new Help to Save scheme, which will be a very attractive offer for those who can take advantage of it.
Small savers will receive bonus from the government if they save £50 a month.
Employees who receive in-work benefits, such as universal credit or working tax credits, who save £50 a month over two years into the scheme receive a bonus a 50 per cent of the value, up to £600. Savings can continue for a further two years where another bonus of 50 per cent of the amount saved, up to £600 received. Save £2,400 and get £1,200.
Professional Investment Advice
Among other investments, we have expertise in the following sectors:
To discuss your Saving & Investment needs or to arrange a meeting directly, call us on 01733 355120 or email firstname.lastname@example.org
The value of investments and income from them may go down. You may not get back the original amount invested.