Are you making the most of your money? - Richard Lishman

There has never been a time when it hasn’t been important to keep a close watch on your personal finances. But, the constant changes we are seeing during the current economic downturn mean that it is more important than ever that our fiscal situation is closely assessed. This is especially true when it comes to making investments.

A regular review will ensure that you are setting aside the right amount and that this money is being put to use in the best way possible. Some forms of investment will provide the potential for financial growth, whereas others will offer the chance for an instant income, some will even provide a mixture of the two.

The investment you choose to make will all depend on what it is you are looking to achieve, so it is important to keep in mind that it is all down to personal circumstance. There are two key areas that have to be considered before choosing the form of investment that you wish to make. The first is the length of time that you want to invest for, this is awfully important as it will affect the shape of the policy. The length of the investment will hinge on whether you are looking to make your money grow over time or if you are seeking immediate income from the investment. It is also worth deliberating whether you will be looking to spend your savings before your death or whether you will be looking to leave some to your heirs.

The other aspect that must be considered is what the most tax-effective method of investing will be. Depending on your choice, your policy can increase the money you retain from your savings and investments tax. For instance, pension plans are a really tax-efficient option because contributing to them will receive a tax relief depending on how much you earn. There are also other options that offer tax relief however, these are not as stable as a pension plan. Seeking the appropriate advice when looking to make an investment is indispensible. Taking advantage of specialist advice from an Independent Financial Adviser (IFA) will help you to pick the most suitable investment option.  

When the financial situation of an individual changes, reassessing your investments should be a priority as they will be affected. For example, a gap in employment may mean that the amount saved in your pension will not be enough to cater for your whole retirement. It is vital that the investor as an investor you are aware of the number of factors that can influence an investment strategy. You may even find that you decided to change your investment policy because you want to be more adventurous or more careful with your financial decisions.

As an investor you will acquire an annual statement, this is to be used in your personal records and to keep a watch on how much your investment has grown. This document will allow you to evaluate the performance of your investment and see if there are any issues relating to your investment fund.

When making an investment a professional fund manager must draw up an Investment Policy Statement (IPS). This statement must be tailored to suit the investor and will lay out a plan of how the investment will be managed and what the aims of the investment are. This document should be reviewed annually, because as the investors financial attitudes change, the investment will, thus the IPS must be altered to reflect this.

An investment balances the level of risk with the level of reward, this of course means that the chance of greater financial gain brings with it uncertainty and an increased chance of a significant loss. This means that as an investor you must prepare yourself and determine the amount of risk that you are willing to make. Some investors are happy to have an unstable portfolio, as long as it still generates money over time. Regardless of this, an IPS must detail an action plan in the event that not everything goes to plan. By doing this you can be safe in the knowledge that even if this don’t work out there is a plan in place to overcome the problem.

Before making any financial decisions it is essential that the advice of an IFA is sought. Not only should the IFA be experienced, they should be able to tailor their knowledge to your individual circumstances. IFAs like money4dentists specialise in assisting those who work in the dental industry to make the right financial choices. Their knowledge extends to tax planning, income protection and mortgages. As a specialist IFA, money4dentists can review your finances and debt and help you toachieve your financial aspirations.

When looking to make an investment there are a number of considerations that must be made, but the first and most important thing to do is seek the services of a knowledgeable and experienced IFA.

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For more information please call 0845 345 5060, email This email address is being protected from spambots. You need JavaScript enabled to view it. or visit www.money4dentists.com