INDEPENDENT ADVICE TAILORED TO YOUR GOALS
EXPERTISE IN DIVERSE INVESTMENT PRODUCTS
20 YEARS OF FINANCIAL INDUSTRY EXPERIENCE
SERVICES
INTRODUCTION TO SAVING AND INVESTING AT RAE FINANCIAL ADVISORY SERVICES LTD
Saving and investing are fundamental pillars of personal finance, providing individuals with the means to achieve financial security, realise their aspirations and plan for the future.
We will take you through a fact find where we will ask you about your current financial situation, your investment goals, and your objectives. We will also ask about your feelings concerning your investment. How you feel about risk and your expectations are important parts of getting the right investment for you.
Independent chartered financial advisor services, like those offered by RAE Financial Advisory Services, are crucial in navigating these areas. Our independent financial advisors provide personalised financial planning and investment strategies tailored to each individual’s goals, risk tolerance and life stages, ensuring that both saving and investing are optimised to build and preserve wealth effectively.
We would like to highlight a few points and factors that you need to consider:-
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People are living longer due to medical advancements and healthy living. This means people need bigger pension provisions to see them through their retirement.
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You cannot predict what the annuity interest rate is going to be in your retirement. If the annuity interest rates are low by your retirement age, this means that you need bigger pension provisions to see you through your retirement.
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Inflation and the cost of living will catch up with you throughout your retirement. This means a dull retirement, which will force you to work longer than required.
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The state pension retirement age is increasing to 68. This means you Stay Old And Poor SOAP.
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The majority of large companies are moving away from providing Defined Benefits (secured income) to their employees, as the cost of providing this benefit is very high.
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A Medical doctor's pension contribution annual allowance is restricted. This means that Medical doctors are more likely to pay tax on their pension benefits before they receive their NHS pension.
There are many points that we can run by you, and the above points conclude that there is a retirement income gap.
WE USE A SIMPLE INITIAL APPROACH
Before you invest, you need to look at your money allocation and proportion. How much do you need for emergency needs? How much do you need as a backup? How much do you need to keep for your long-term strategy?
This is derived from the same concept as when you buy your food. Some of your food is stored in the cupboard, some in the fridge, and some in the freezer. The same concept is applied to your money allocation and proportion.
It is our philosophy that you should be supported throughout your savings and investment journey to give you an excellent opportunity to achieve your goals and objectives.
By taking regular financial advice, you have already taken an important first step. Financial advice can help you navigate through the complexity, review and plan appropriately, take action when necessary, and help you meet your objectives.
When it comes to putting in place an action plan that is right for you, we can help you identify:
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How much to trade-offs between investment returns and investment risk?
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Investment solutions that you are comfortable with.
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The most tax-efficient vehicle for your savings and investment.
Of course, doing all of the above is not just a one-off exercise – your circumstances change, the stock markets go up and down, and tax regulation doesn’t stand still.
We will help you review all of this regularly, saving you time and helping you identify the right action for you at each stage of your journey. If a strong plan is in place, it might not be necessary to make frequent changes, but you will have peace of mind in knowing that an expert is on hand to support you when you need it most.
WHY DO YOU NEED TO INVEST?
Investing is the process of putting money aside that you don’t need to spend now so that you have more to spend in the future. The aim is to achieve a good return on your investment.
For most styles of investing, the returns will not be guaranteed and can be affected by market conditions. Secure returns are normally offered by investing in areas such as cash and are usually available from the bank or building society. Investing money to achieve a specific goal is normally considered to be a medium-to long-term strategy, for example, planning for retirement. Depending on your circumstances, you can achieve this by investing regularly, usually monthly or annually, or you can make one-off lump-sum investments.
BEFORE YOU INVEST
We recommend that you address three key areas:
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You have sorted out any debt
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You have adequate emergency funds
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You have adequate financial protection to cover common risks such as being off work due to sickness or accident.
WHY INVESTING?
You invest for a number of reasons:
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Saving for a specific purpose
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Building a pot of money for personal use at a later date
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To beat inflation and ensure that you maintain a good standard of living
UNDERSTANDING YOUR NEEDS AND OBJECTIVES
Investing in what is most appropriate suited to you means we need to understand more about you. For instance, what are you investing in? Do you have a goal in mind? What is your investment experience?
We will consider your tax position to check that you are using any appropriate tax relief and allowance entitlements.
The key point when investing is to determine the level of risk you are prepared to take with your investment. But what is the risk? How does it affect you, and where should you invest?
Here are some of the areas you should consider:
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What are you investing in - growth, income or both?
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What other investment products do you already have?
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Do you need access to your money at any time?
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What is your tax position, both now and when you want to take the benefits from your investment?
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What means do we have to enable you to invest?
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What products can you invest in which will be most tax efficient?
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How long are you prepared to invest?
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What degree of risk are you prepared to take?
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We will help you through this process and provide tailored advice to suit your personal circumstances.
We will help you through this process and provide tailored advice to suit your personal circumstances.
WHAT IS THE DIFFERENCE BETWEEN SAVING AND INVESTING?
People in the UK often save for specific reasons, as it’s usually the safest way to build up a pot of money. It’s less risky than investing but offers limited growth. The most you’ll earn on the money you save is the interest added.
Cash saving
Is perfect for people who don’t want to take any risks with their money, and most savings accounts have easy access or are for a fixed term. However, you should also consider the effect of inflation on your cash savings. If the rate of inflation is greater than the rate of interest being earned, your savings are effectively losing value over time. This is like buying a car that depreciates over time. Savings also provide security by ensuring that some money is put aside for emergencies or unexpected costs.
Investing
Is for achieving a higher potential growth rate than banks and building society interest rates. There are many different ways of investing, but whichever way you choose, the general idea is the same: to build up some money that can be used, for example, to make a large purchase such as going on a dream holiday, paying for school fees or covering the cost of expensive life events such as a wedding.
WHAT ARE THE INVESTMENT OPTIONS?
Unit Trusts
Unit trusts are a type of collective investment that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other assets. They are managed by professional fund managers who make investment decisions on behalf of investors.
With-Profits
With-profit investments are a type of investment offered by insurance companies that aim to provide a smoothed investment return over the long term. With-profit funds invest in a diversified portfolio of assets, including equities, bonds, and property.
Capital Investment Bonds
Capital investment bonds are investment products offered by insurance companies that allow investors to invest a lump sum of money into a single premium bond, which is then invested in a range of assets, including equities, bonds, and property.
ISAs
Individual savings accounts (ISAs) are tax-efficient savings and investment accounts available to UK residents. ISAs allow individuals to invest in a wide range of assets, including cash, stocks and shares, and innovative finance investments, with tax-free returns.
Lifetime ISA
Lifetime ISAs are tax-efficient savings and investment accounts available to UK residents aged 18 to 39. Lifetime ISAs allow individuals to save for their first home or retirement and receive a government bonus of 25% on contributions up to £4,000 per year.
Investment Trusts
Investment trusts are a type of collective investment scheme that pools money from multiple investors to invest in a diversified portfolio of securities. Investment trusts are closed-ended investment companies that issue a fixed number of shares, which are traded on stock exchanges like individual stocks.
Equities
Equities, also known as stocks or shares, represent ownership stakes in publicly traded companies. Investing in equities allows investors to participate in the ownership and growth of companies and potentially benefit from capital appreciation and dividend income.
Fixed Interest Investments
Fixed-interest investments, also known as bonds or fixed-income securities, are debt instruments issued by governments, municipalities, corporations, and other entities to raise capital. Fixed interest investments pay a fixed rate of interest or coupon payment to investors at regular intervals until maturity, when the principal amount is repaid.
National Savings Products
National savings products are savings and investment products offered by the UK government through National Savings and Investments (NS&I). National savings products include premium bonds, savings accounts, and fixed-term savings certificates.
Junior ISAs
Junior ISAs are tax-efficient savings and investment accounts available to children under the age of 18 who are UK residents. Junior ISAs allow parents, guardians, and family members to invest on behalf of children and save for their future expenses, such as education, housing, and other life events.
OEICs
Open-ended investment companies (OEICs) are a type of collective investment scheme that pools money from multiple investors to invest in a diversified portfolio of securities. OEICs are managed by professional fund managers who make investment decisions on behalf of investors.
Offshore Collectives
Offshore collectives are pooled investment vehicles domiciled outside the UK that allow investors to pool their money together to invest in a diversified portfolio of securities. Offshore collectives are managed by professional fund managers who make investment decisions on behalf of investors.
SAVING AND INVESTING FINANCIAL ADVICE IN MANCHESTER AND THE NORTH WEST
Savings and investments are indispensable tools for building wealth, achieving financial goals, and securing long-term prosperity. By understanding the principles of saving and investing and seeking appropriate advice, individuals can unlock the full potential of their financial resources and pave the way for a brighter financial future. If you’re in Manchester or the North West, our independent chartered financial advisory services are here to assist you.
You can reach out to us for expert financial advice tailored to your individual needs and goals. Whether you’re looking to start saving for your future, invest in the stock market, or plan for retirement, our experienced independent financial advisers are happy to help.
To schedule a free no-obligation consultation with one of our independent financial advisers, simply call us at 07957656773, send an email to ramzy@raefinancialservices.co.uk, or fill in our contact form below.
How can RAE Financial Advisory Services Ltd help you manage your savings and investment planning needs?
RAE Financial Advisory Services Ltd offers a personalised approach to financial planning, ensuring that your plan aligns with your goals and aspirations. Whether you’re looking for higher potential growth rates above banks and building society interest rates, take control and manage the risks that are associated with your investment, invest your savings for a specific objective in the future, or spread your investment in different asset classes nationally and internationally in a tax-efficient way. We are here to help.
What are the benefits of working with RAE Financial Advisory Services Ltd?
Working with RAE Financial Advisory Services Ltd gives you access to truly independent and unbiased financial advisors in the UK who can help you make informed financial decisions, maximise your pension provisions, save you paying tax than necessary, utilise your tax-free personal allowance, manage your wealth tax efficiently, reduce your investment charges and achieve your long-term financial goals.
How much does it cost to work with RAE Financial Advisory Services Ltd?
The cost of working with RAE Financial Advisory Services Ltd depends on the services you require and the complexity of your financial situation. We offer transparent pricing and will discuss fees with you upfront.
The amount of tax we save you in taxes and manage your risk far outweighs our cost.
DISCLAIMER
The Value of Investments and the Income From Them May Go Down. You May Not Get Back the Original Amount Invested.
TESTIMONIALS
