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Savings & Investments
Investment to many is the setting aside of money in the expectation of earning a profit by way of income or capital growth. In early life, people may wish to save out of income in order to create capital, whereas in later life they may wish to invest capital for the creation of income. Whatever the reason for investing money, it is important to bear in mind the effects of inflation, whose rate has to be counterbalanced and exceeded to avoid the erosion of capital.
Education funding is a concern of many clients who have aspirations for their children to receive private education from an early age and university thereafter. This can be very expensive, especially as fees are increasing substantially each year. This is one of the long term planning decisions that the client has to make.
Therefore, in respect of investments many considerations have to be taken into account:
The client's current circumstances and tax position,
The amounts to be invested and required in the end,
The purpose of the investment (current and future),
The term of the investment,
If access to the funds is needed,
The client's attitude to risk and investment (ie, ethical funds).
When these factors are considered in a holistic overview, recommendations can then be made to suit that person's needs. Each investment has differing terms conditions and tax treatments, which are considered before any recommendations are made. Balanced financial portfolios can then be created and maintained.
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