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Is investing right for me?

It depends on your circumstances and financial ambitions. Here are some considerations:

Savings

Savings could be right for you if:

  • you want a guaranteed return on your money (or at least guarantee of original capital)
  • you are unwilling to risk losing any of your money
  • you require access to your money at short notice or your goal is less than five years away

Investing

Investing could be right for you if:

  • you are looking to achieve better returns than savings accounts offer over the long term
  • you are prepared to risk losing some (or all) of your money
  • you do not require access to your money, and are able to commit for at least five years

A good way of approaching it is to write down your financial goals and when you want to achieve each one by. Goals coming up shortly will be best achieved by a savings account. If you have longer-term needs over five years, you might want to invest some of your money instead.

By investing into collective investments, your capital is used to buy things that have the potential to increase in value, like stocks, property or bonds. You would benefit from any growth, and also have the option to take a regular income from the investment. But there are risks involved. As stock market-based investments can go down as well as up, you could lose some or all of your money. For this reason, investing is not appropriate for short-term goals.

As a general rule, the longer you can leave your money invested, the greater chance it has to grow.

Our expert says...

Mark Butterworth

As you might expect, different types of investments adopt different levels of risk. Whilst no-one likes the idea of losing money, you might find you are prepared to accept some degree of risk for the potential of higher returns.

Mark Butterworth, Head of Technical Services

Other advantages of investing

  • Potential to achieve greater growth than savings accounts can provide over the long term (five or more years).
  • The opportunity to benefit from diversification. This means building a balanced portfolio of investments.
  • Peace of mind you’ve made concrete plans to help you achieve major life goals, such as retiring, buying a holiday home or helping loved ones.

Your next steps

If you're ready to talk to us about investing, then you can find out more on our financial advice website. Here you will be able to find your nearest financial adviser, book a financial advice review or give us a call and talk to a member of our Direct Business Centre.

Stock market-based investments are not like building society savings accounts as your capital is at risk and you may get back less than you invested. The value of your investments and any income from them may fall as well as rise.

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