Savings and Investments
So why save money?
There are many reasons to save for the future - perhaps for something special? Or perhaps to be sure that when we really need something we have the funds to acquire it, without taking on debt? Whether you place your money in a piggy bank, or in a multinational investment house, our aims are broadly the same; to provide for our future needs, and to protect ourselves against unexpected causes of expenditure.
When planning your finances, it is important to distinguish the difference between savings and investments.
Savings are generally funds that you set aside, but can access relatively quickly. These savings are often for a specific need or purchase, like a holiday or a new car. The most common way of ‘saving’ is into a bank account (‘deposit’ account) where the money can be accessed in an emergency, and for every £1 you put in, you will get £1 back (short of a bank collapse!), and possibly some interest.
Investments are designed to be held for a longer term, usually at least 5 years. You need to be comfortable with tying up this money for a period of time, and should not consider investments unless you have some savings in place. Most investments are not guaranteed to return your money in full, although do offer the prospect of higher returns than deposit accounts. Returns, risk and volatility are the factors that will determine a suitable place for your savings.
PN Dales can discuss with you, the benefits of each type of saving and offer the best solution for your needs / situation, whilst explaining in detail the associated returns, risk or volatility.
I have entrusted my financial investments to Philip Dales since 2008 and, despite the current state of the financial markets, have been delighted to see an appreciable return over the past few years. I consider Philip Dales to be an astute young man with a wealth of financial experience and knowledge. I would not hesitate to recommend him as an excellent financial adviser.
Norma - Beeston
Further information about Investments:
Investing and Risks