Articles -> Investment

The financial world is now more complex, fast moving and subject to more regulation than ever before, and it doesn’t look like its going to get any easier for those looking to invest their money on their own. Everyone needs help and advice when it comes to savings and investments. High street banks offer independent savings accounts and high interest savings accounts, but investment is the way to really make a return on your money.

Investing your money is one of the most overlooked financial windfalls of the 21 st century. There are an abundance of organisations that will invest your money wisely and effectively, for a commission of course. However, some companies claim that they can make 10%+ of your invested money back within a year. For example, if you were to invest £1000, one year later you are looking at a £100+ return; the higher the investment the higher the return.

In a world where the future of the financial industry is so uncertain it is a wise move to invest your money for the long term. Pension schemes have proved themselves to be unreliable, and the age of retirement has just increased from 65 to 68. It makes financial sense to invest your money sooner rather than later. The longer your money is invested for, the higher the increase in the amount of money you will make. Investment returns usually run on a quarterly basis. So at the end of a first quarter period on an investment of £1000 at 10%, the amount earned would be £25. You can either choose to take that money out of the investment or keep it invested so that your total investment at the end of the first quarter will be £1025. This will then go on to the second quarter where you will earn £1050.62 and so on.

The phrase ‘You need money to make money’ rings true to investing. It is not uncommon for people to use the money from a loan just to invest. Often the dividends will pay for the repayments on the loan. Investing in this way is not without its complications and risks. If you do decide to invest in this way be sure to get the proper advice from an independent financial advisor before any crucial decisions are made.