Investing in Your Future
We hear a lot about investments when talking about financial planning and advice, and to a great many people, investing seems like something that only the very rich do.
In reality, there are several reasons that people decide upon it, and it’s not exclusive to those that have a huge portfolio. More and more people are realising that investment is more accessible than they had previously thought.
One of the primary reasons that people invest their money throughout their lifetime is to ensure that they have a better income in later life. Savings are obviously useful, but successful investment ensures that money put away holds or increases in value as time progresses. For instance, someone who has saved throughout their life would normally find that the £1000 they saved 20 years ago is not worth nearly as much now as it was then. Banks do pay interest, but it’s often not enough.
An opportunity with a good ROI (return on investment) however, will ensure that a large saving doesn’t become less valuable in the future. There are also many ways to invest that, if successful, will mean their portfolio significantly increases in value, which is the aim of any investor.
Investments such as these mean that upon retirement, an individual will have considerably more money to use than their company or state pension alone. These savings can be used for anything from cars and holidays to care in later life.
Inheritance for Loved Ones
Another primary reason people like to invest is so that they can build a fund for inheritance. Tax is often applicable to inheritance, so the more that there is in the fund, the better. It often gives parents a great sense of pride if they can build a significant fund for their children and grandchildren.
Some investors do in fact look to put their money to use, rather than simply aim to increase their money. There are many businesses that can be invested in, and there are many individuals who choose to put their money into these kinds of endeavours because they like to see that their money has been put to good use. This is a riskier method of investment, and is usually only made by dedicated investors who have the time to assess businesses and monitor their money.
Managing an Investment
So how do people go about investing their money? There are a huge number of different investment opportunities, which means that things can quickly become confusing. Some people will closely manage their money, where other people choose to use a wealth management company such as Sanlam Private Wealth. This is usually the best option, as the experts are better placed to achieve profits, through experience, contacts and planning.
The options range massively, and it’s up to the investor as to who they trust with their money. Some of these companies that will help individuals invest their portfolio will also have certain methods of investment; such as being ethical or environmentally friendly.