Whatever your savings goals, it’s important that your money works as hard as possible for you. If you are saving for the longer term (usually at least five years), you might want to consider investing some of your cash. It’s important that you invest in a way that’s right for you without taking unacceptable risks. See our guide below for some top tips for first-time investors:
What are investments?
There are many different types of investments available including stocks & shares and property & bonds. Investing money in these types of assets has a potential for greater growth and returns however they do carry additional risks. Contrary to common belief you don’t need a large lump sum to start investing, some products offer a regular savings element allowing you to invest smaller amounts on a monthly basis.
Why should I think about investing?
We all have different savings goals and these can change depending on what life stage you are at. If you are saving for the longer term and don’t need access to your money, investing could be an alternative to a cash account which is linked to savings rates which remain at low levels.
When should I start investing?
Nobody can predict the perfect time in the market for you to invest your money, however you should make sure that you have enough money which you can access easily to cover your everyday expenses before you consider it. Remember investment values will fluctuate. Before you invest make sure that you are happy that, in exchange for potentially better returns, there is always an associated risk.
What about the risks?
Whenever you invest money you will always be exposed to some element of risk. It’s very important to think about how much risk you are comfortable with and that you can afford to take before making your investment. Generally the more risk you take the bigger the potential return on your investment, this is because more risky investments are generally more volatile which means they can rise and fall rapidly.
Think about your personal circumstances
If you lost money on your investment, consider how this would affect your standard of living. If a potential loss could affect your lifestyle you may want to think about a more cautious investment where losses can be managed more effectively.
Do your homework
When you find an investment product you may be interested in, make sure that you do your research. Check out independent financial press and websites for information. Ensure that you are happy with how and where your money will be invested and always check the risk level of the investment to make sure you are comfortable with it. If you have any doubts consider contacting a qualified Financial Adviser.
Police Mutual offer a range of savings and investments products. Whether you want to save regularly or invest a larger amount our products could help meet your needs. To find out more about our range click here or call the team on 0345 88 22 999.
Police Mutual Assurance Society Limited is an incorporated friendly society. Registered office: Alexandra House, Queen Street, Lichfield, Staffordshire WS13 6QS.
Article published on 1 October 2017