Savings Accounts - Professional Advice

Summary:
When it comes to savings, you may well find yourself daunted by the sheer variety of ways to invest your money. Particularly if you find yourself with a substantial amount to invest, and are less than confident at dealing with things like the stock market, bonds and trusts, you’re likely to gain from professional expertise.


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When it comes to savings, you may well find yourself daunted by the sheer variety of ways to invest your money. Particularly if you find yourself with a substantial amount to invest, and are less than confident at dealing with things like the stock market, bonds and trusts, you’re likely to gain from professional expertise. The main issue here is trust – you want to be sure your money is being used to its full potential and whoever you entrust it to must be someone you have total confidence in.

If you have a basic understanding of how savings and investments work, however, it will be a lot easier to make judgements about the reliability and efficiency of individual advisers.

Independent Financial Advisers

Usually you will not be charged for general advice, but the adviser will gain commission when he or she sells you particular products. Don’t be afraid to ask about commissions – a good adviser should be open and transparent about such matters. They are duty bound to find out all relevant information about you and then give ‘best advice’ – which means selling you the products that are most suitable for your situation.

Accountants

Accountants normally advise on book keeping and tax, but sometimes also give advice about investments. If involved with investing, they must belong to one of the Recognised Professional Bodies responsible for regulating their business. These include the Institute of Chartered Accountants and the Association of Chartered Certified Accountants.

Stockbrokers

If you are dealing on the stock market, you will need to buy and sell your shares through a broker. If you want advice on your investments, choose a traditional stockbroker. On the other hand, there are brokers that offer a dealing-only service, and this is a cheaper way to buy and sell shares. Stockbrokers charge a commission on deals, and a traditional brokers service should include advice. www.londonstockexchange.com provides detailed advice and ways to locate a broker.

The Financial Services Authority regulates all these professionals – if you are unsure about the credentials or dealings of someone check with them to verify that they are legitimate and are operating fairly. The FSA website also has details of what to do if you are unhappy with the service you’ve received from a finance professional – check www.fsa.gov.uk. Once again, the government’s advice site has sound information on the basic principles – and links to other information sites. www.direct.gov.uk

Savings Accounts – An Overview

Summary:
Being in control of your finances means not only managing your current account wisely, but planning ahead too. Although we are used to thinking we will have the welfare state to fall back on, the support offered by state benefits is far from generous.

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Being in control of your finances means not only managing your current account wisely, but planning ahead too. Although we are used to thinking we will have the welfare state to fall back on, the support offered by state benefits is far from generous - most people would struggle to exist on a basic pension alone.

Furthermore, our ageing population face an uncertain future as demographics change – by the time today’s thirty-year olds reach retirement there’s no telling how the economic situation will look. Aside from planning your retirement, you ought to have something to fall back on in case there’s a sudden change in your circumstances – how would you manage if illness or redundancy curtailed your earnings?

Although these issues are serious ones, there are many ways to ensure that you and your family will be well provided for and finding them need not be a nightmare. Start today by considering how much you can afford to put by. Be realistic, but try to allocate a fair proportion of your budget – aim to save at least 10% of your monthly income if you can. Secondly, look at your options – this guide provides a general view of some of the more common ways to save and resources for finding more information.

How you choose to save will depend on your age, circumstances and the amount you want to invest – but remember it’s never too late to start, and never too early to plan for your future. Even if you can only afford to put a small amount away every month, it could make a huge difference in the long run.

There are vast amounts of different ways to save and invest, and there are also tax benefits to take into account. In an effort to urge people to save, the government offer various incentives – such as tax-free savings plans and children’s savings accounts.

Savings accounts often attract higher interest rates than current accounts, so you could be earning money daily without expending any effort. For those willing to diversify, there are offshore accounts and investments to consider - these are explored in more detail below.

Considering your family’s financial security is often a high priority – check out the sections on children’s accounts for ideas. The last section offers ways to find more information, with listings of bodies that may be able to help you.

Finally, enjoy the feeling of taking responsibility for your own future!