Investing in your future
At Reventon, we often discuss the benefits of a comprehensive investment plan to secure your finances for the future.
There are many different types of investment, which all come with different risks and rewards. Generally, the riskier your investment, the higher the potential payout. If you opt for a more secure investment, you may have to wait a little longer to see significant returns.
For these reasons, it’s important to assess your financial goals before creating a personalised investment plan. For example if you are 55 years old and looking to build a nest egg for a comfortable retirement, you will require a completely different plan to someone in their early twenties looking to supplement their income for a more stable future.
But what kind of investments are out there, and which one is right for you?
Cash investments generally mean keeping your money in a high interest savings account. This is a very safe method of investment, but in general, has relatively low rewards compared to other investment strategies. Cash investments can be an excellent way of storing money you otherwise wouldn’t need access to, but any rise in equity will be limited. In addition, the ‘real value’ of your investment may even stagnate if inflation rises.
Fixed interest investments
Fixed interest investments include things like government bonds, corporate bonds or term deposits. In general, these will reap a higher reward than a simple cash investment, but is still classed as a ‘defensive investment’ as they are considered low risk and potentially low yield. Your money is kept in the bond or deposit for a set period of time, which means there is less freedom than other investment methods.
With property investment, you are moving into a growth investment technique, as opposed to cash and fixed interest investments. This means that equity can rise rapidly and significantly over a period of time. With this kind of opportunity, there comes a higher risk factor in your investment. However property investment is considered to be a one of the safest growth investment techniques available. With the right property investment guidance, purchasing property offers a popular and safe means of wealth creation.
Investing in shares
Shares are an increasingly popular investment method, where you can purchase a share of a company via a stock exchange. As a company gains value, so do your shares. This is a notoriously risky method of investing, but with the right guidance it can be potentially lucrative, with some share prices rapidly increasing in a short space of time. Depending on your individual goals and the timeframe you have available, shares could be a well suited growth investment method.
It’s all about you
No-one can tell you definitively what the ‘best investment method’ is. It all depends on the level of risk you are willing and able to take on, and the amount of time you have to reach your financial goals.
At Reventon, our most popular method of investment is property. It generally offers a means of investment that has the potentially to be lucrative, but without a huge amount of long term risk. Even within the market, we are able to create tailored strategies to our clients’ individual needs and goals.
If you are interested in property investment or any other kind of investment mentioned above, the golden rule is to seek professional advice first. It pays to discuss your current financial circumstances and define your goals before making a strategy – or more importantly before investing any of your hard-earned money.
With Reventon, you can get a free investment advice session with one of our experts to help you do this. Find out more or book your consultation.