Putting money away for the longer term usually means investing your money in schemes or funds based on the stock market. When investing, you take calculated risks to increase your chance of getting higher returns on your money; especially over the longer term i.e. money you can afford to tie up for five years or more.

There are different types of investments but, basically, you take a risk with your money by investing in assets that could rise or fall in value. There is no guarantee you will make a return on your investment or even that you will get back the same amount you invested in the first place. The upside is that you often get a greater return than you would with savings, giving you better protection against inflation over the long term.

How investments pay out

There are different ways you can ‘make money’ with an investment. Some investments provide:

• Capital growth – the original amount you invest grows; or
• Income – a regular payment, for example dividends from shares; or
• A combination of income and growth.

Already got investments?

If you’re saving in a pension, have a life insurance policy or are part of an employee share scheme, then you are already investing. These usually invest your money in the stockmarket with a view to making it grow over a long period.

If you are not sure of how these are progressing or if they are the best route for yourself why not contact me and arrange a time to meet up by clicking on the contact us section.