Investments
There are so many different types of savings and investment plans,
so it is sensible to seek independent advice as to which ones are
most appropriate to your needs.
Individual
Savings Accounts (ISAs) - ISAs are a tax efficient product in
which to place cash savings and investments in Stocks & Shares
and Collective Investments. The cash element, currently up to a maximum
of £3,600 per tax year (6th April to 5th April the next year)
is normally a deposit with a bank or a building society. As the money
is held in an ISA, interest which accrues is free of tax. This is
commonly called a Cash ISA. You are eligible to invest in a Cash ISA
from age 16.
In
the case of the Stocks & Shares ISA, the investor can place up
to £7,200 per tax year into this product. This can be 100% Stocks
& Shares/Collectives based or a combination of cash (up to £3,600),
and Stocks & Shares/Collectives. The minimum age to be eligible
to invest in a Stocks & Shares ISA is 18. Once again it is important
to seek advice as to which product is most suitable to you.
It is possible to move cash within an ISA to Stocks & Shares,
but not possible to move Stocks & Shares in an ISA to cash. ISAs
will now be available indefinitely.
Stocks
& Shares (Equities)
- Buying stocks and shares directly is more risky than other types
of savings and investments, however over the long term the equity
market has historically provided greater returns. it should be remembered
past performance is not a guide to future performance. Some company
shares carry a greater risk to capital than others, so great care
and advice should be taken before investing in this sector. MJR Financial
Services are not authorised to advise on individual shares, but we
can put you in touch with a reputable Stock Broker, who would be
able to advise you appropriately.
Collective
Investments - Most people prefer to invest in Collective Investments,
such as Unit Trusts and Investment Trusts, as these funds invest in
a portfolio of shares in different companies, in order to spread the
investment risk. The investor is reliant on the performance of the
Fund Manager and his team. You need to seek good advice, to try to
ensure that funds you invest into are managed by people with a proven
track record. Collectives can also invest in Fixed Interest and Corporate
Bonds, which may be classed as lower risk equity funds.
National
Savings products are offerings available from the UK Government. Investment
returns tend not to be outstanding and you may be required to tie
the money up for long periods. However, these investments can be low
risk and in some cases tax-free. The Financial Services Authority
do not regulate National Savings.
