Savings & Investments

When planning your finances, it is important to distinguish the difference between savings or investment.

Savings
Savings are generally funds that you set aside, but can get to relatively quickly, 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 where the money can be accessed in an emergency. You may also be lucky enough to generate a bit of interest!

Investments
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.

Savings and investment products range from a simple current account (which allows a small amount of interest, but allows regular payments and withdrawals) through to company shares (potentially high benefits but greater risks).

Investment advice is a complex area and, as with all aspects of financial planning, requires a clear understanding & knowledge of the client.

We would expect to determine:

• The term over which you would be happy to invest your funds
• The level of income required (if any).
• Your attitude to 'ethical' investment.
• Your understanding of 'pooled' or 'collective' investments.
• Your understanding of geographical diversification.
• Your understanding of asset allocation.
• Your attitude to investment risk

We will explain why we have selected particular investments and why we feel they match your needs and attitude to risk.

THE VALUE OF INVESTMENTS CAN FALL AS WELL AS RISE, AND YOU MAY NOT GET BACK YOUR ORIGINAL INVESTMENT.

For an informal chat about your requirements please call 01223 846726 or email info@downingfinancial.co.uk