The Financial Group
We simplify all those essential financial decisions
Why   are   we   encouraged   to   save   money?   From   childhood,   most   of   us   are   told   to   put   away   money to   save   for   the   future   -   perhaps   for   something   special?   Or   perhaps   to   be   sure   that   when   we really   need   something   we   have   the   funds   to   acquire   it,   without   taking   on   debt?   Whether   you place   your   money   in   a   piggy   bank,   or   in   a   multinational   investment   house,   our   aims   are   broadly the   same;   to   provide   for   our   future   needs,   and   to   protect   ourselves   against   unexpected   causes of expenditure. When   planning   your   finances,   it   is   important   to   distinguish   the   difference   between   savings   and investments.   Savings   are   generally   funds   that   you   set   aside,   but   can   access   relatively   quickly. These   savings   are   often   for   a   specific   need   or   purchase,   like   a   holiday   or   a   new   car.   The   most common   way   of   ‘saving’   is   into   a   bank   account   (‘deposit’   account)   where   the   money   can   be accessed   in   an   emergency,   and   for   every   £1   you   put   in,   you   will   get   £1   back   (short   of   a   bank collapse!), and possibly some interest. Investments   are   designed   to   be   held   for   a   longer   term,   usually   at   least   5   years.   You   need   to   be   comfortable   with   tying up   this   money   for   a   period   of   time,   and   should   not   consider   investments   unless   you   have   some   savings   in   place.   Most investments   are   not   guaranteed   to   return   your   money   in   full,   although   do   offer   the   prospect   of   higher   returns   than deposit accounts. Returns, risk and volatility are the factors that will determine a suitable place for your savings. Savings & Investment products range from a simple current account, which allows a small amount of interest, but facilitates regular payments and withdrawals without detriment to your interest. At the opposite end of the scale would be company shares, where you invest money in a company, with the prospect that the company will prosper and the shares will increase in value over time. In addition, most companies will pay their shareholders an annual dividend. Whilst the benefits are potentially high, the risks are also much greater. Part of our investment process for clients is to ascertain individual risk profile. Please contact us if you would like more information.