Basic Knowledge About Saving & Investment
I f you are the kind of investor who’s looking for a good return on investments in the future, then short term investment is not the good choice for you. This is because even though some of these short term investments may have very high rates of return, their risk of loss is also extremely high. Long term investment is also very ideal in that way you will gain profits as time goes by, enabling you to be financially stable when you go to retirement age or middle age.
One of the best options you can go for is tax free investment. The best part about tax free investment is that you can save or invest money without paying tax on the interest that you have earned. One of the well known tax free investment I the UK tax free bonds. Deposits for the bonds start from as little as ?10 and you can pay up to ?25 a month. A bond must have its own edge and its biggest advantage is probably the guaranteed payout. The performance of the investment in the market also matters because you might get some bonuses as a reward. Another good thing about this is the payout that you will receive at the end is much higher compared to other high interest bank savings account. The higher your monthly payments, the higher the guaranteed minimum cash amount you will receive at the end of bond life.
Family investments should be steady and high enough to support the family in times of financial strain. You have to keep in mind that the security of your job doesn’t have any assurance and you have to keep in mind that the cash that you have in hand is not enough for you to start any business in the near future. In the future, all of us will going to have our dependents and the best way to secure their financial assistance is by investing in a money-builder account. A regular premium is a premium that you can choose under the long term investment wherein you can pay for every month. The premiums increase by 20% every year so that by the end of the first five years, you are paying double the amount of premiums you started with. Payment plans can be as high as ?100 and can be as low as ?10.
If your income allows for it, go for the highest premium plan on offer so as to ensure high returns. If you wish to go for another option in order to secure the financial assistance of your family, then Prosperity plans are also a good choice. To add up, your account can also earn a bonus every year which can give you a fast growth for your income.