Are you saving for a rainy day?

Understand how to effectively invest for your future

Taking a planned approach to managing your money is more than saving for a rainy day.

If your money is sitting dormant or camping out in a current savings bank account then it’s probably not keeping pace with inflation or gaining any substantial interest. Your money might even be eroding due to bank fees!

Investments on the other hand make your money work harder and provide a greater return. Being savvy when it comes to investments will help you to plan a fertile future and make your goals more achievable.

Woman reviewing finance options and investments
Man reviewing financial information

Understand and explore investment opportunities

A financial advisor is the best person to discuss an investments strategy with. It doesn’t need to be complicated but there are a number of options to be considered. Your current circumstances, future aspirations and attitude to risk can be discussed with a professional who can guide you through the pros and cons of investment assets such as cash, property, fixed interest and stocks and shares.

Growth assets of property and shares will provide a higher return but they also come with increased risks due to their undulant nature.

Defensive assets typically generate lower returns, so a good way to invest cash and fixed interest is alongside growth assets to balance the risk with the return.

Over the years [Willow Financial Services] has been guiding me with robust, thorough and safe judgement taking on board previous and current financial pressures and constraints. I find her advice logical and easy to understand and is deciphered from the jungle of financial jargon.

Alan Rogers
Woman counting coins and planning her finances

Make the most of your tax-free allowance

The easiest way to save (or make) money with very little effort is to make the most of your tax-free allowance by investing in a pension plan or ISA fund. A pension plan can see as much as 20% saved as a tax-free investment.

There are various options available for both investment methods and many can be aligned with your personal values, such as sustainable funds, research and development assets or commercial investment strategies.

Looking ahead to find financial plan

What are the benefits of investing?

The average person now lives well into their 80s. Thinking logically, even if you retire at around 68 years of age, you will need a retirement income that provides for an average of 20 years. An inheritance or payout may not be an option so your money needs to earn money.

The earlier in life you can start investing, the greater the benefit in later life. In fact, you may not need to wait until later life before reaping the benefits if you are sensible with where you invest and start with a few pounds.

Think about the big-ticket items in the future. It may not be your own retirement, but what about your children’s education, marriage or dare we say it, unexpected events such as divorce, natural disaster or a severe accident?

Couple who planned for retirement and are ready to jet off on holiday

Plan for now and the future

Investing in your future wellbeing and that of your loved ones should be a priority. We all want the best in life and to avoid adversity. The easiest way is to take control today, plan for tomorrow and the day after, and the day after that…

Talk to Willow Financial Solutions about investing for an abundant future and take those rainy days in your stride.