Everyone is being told to plan carefully for his or her financial future. If you have a family then this is perhaps even more important. While financial turmoil seems unlikely for most people, when it hits, we’re often taken by surprise and unprepared for the financial burdens that follow.
However a well planned approach to family savings and investments can be a good idea and helps to bring peace of mind for you and your family in the event that something happens like losing your job.
When you begin looking for a savings or investment plan, it’s important to keep these key factors in mind:
Making the right choice
Investments may grow and whilst stock market investments give your money access to the long term growth potential of the stockmarket, growth on your investment isn’t a guaranteed outcome. Stock market investments can rise as well as fall and your original investment is not guaranteed. A financial advisor could be really valuable, if you are unsure about which products are suitable for your investment goals. An advisor will be able to look at your individual needs and explain the risks involved comprehensively.
Before making an investment, a financial adviser will:
An advisor will also explain to you the ‘key features’ of your purchase – including the risks of the particular product and how it compares to other options on the market.
If you choose to put your money into a savings account, while your end payment may not be as high as an investment, your money is at much lower risk and, in addition to getting back what you put in, you’ll usually accumulate interest. However, you should bear in mind that inflation may reduce what you can buy in the future.
If you’re choosing to save, you may find you’re well placed to make a decision on where to put your money. While a financial advisor can help, many banks and building societies may also be able to provide enough information on their products for you to make a decision yourself.
Whichever route you choose, make sure you have taken your family’s needs into account. Think about what you want for your family in the next five to ten years and consider what kind of risk you are prepared to take.
Jill Mackay, Scottish Friendly
No advice has been provided by Scottish Friendly. If you are in any doubt as to whether a plan is suitable for you, you should contact a financial advisor for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting www.unbiased.co.uk Advisers may charge for providing such advice and should confirm any cost beforehand.