Are you planning to invest your savings? One of the biggest advantages of investing is that it enables you to multiply your savings – which can be used to fund everyday costs, or for future endeavours, such as retirement. Some people prefer to store their savings in a bank account, due to the passive interest they receive; however, an investment can offer you a more lucrative interest that will benefit you massively.
Before making any decisions, it is important to assess whether you’re ready to invest. Once this has been established, you can then decide on the right investment for you, which will all depend on your individual circumstances. This could include how long you want to invest, the risk you’re willing to take, and the amount of responsibility you want to take on. To help you make the right decision, you should take a look at the following investments and decide which is suitable for you.
Real estate
For many years, property has been one of the most lucrative investments in the UK. This is because real estate is tangible, which allows an investor to have control over the investment due to it being a physical asset. This means you can make changes to a property to improve its value, which will allow you to up the asking price, increase monthly rent and enable capital appreciation to occur.
If you’re new to property investment, you should seek professional advice from RW Invest, who are industry experts that can provide you with everything you need to achieve success. They have various properties available in north-west cities such as Liverpool and Manchester, where you can find some of the country’s highest rental yields. Alternatively, it might be worth checking out a reliable property sourcing company to help you with your initial investments.
Stocks and bonds
Two of the most popular types of investments are stocks and bonds, which are also the most used trade items. For your first investment, you might want to start with just one of these investments. To ensure you choose the right one out of the two, you should consider several factors. For example, if you’re looking for a long-term investment with high returns and are not worried about the risk level, then stocks are probably your best option. Stocks tend to be more volatile in the short-term, although they tend to recover, which makes them a better choice over a prolonged period of time.
Bonds, on the other hand, are a safer option, so if the risk is a huge put off for you, this will be the better choice. However, many experienced investors have actually found more success in combining the two. To reap the financial benefits, you need to find the right balance of stocks and bonds investment. To help you decide on the right percentage for each, you should adopt the 120 rule. This works by subtracting your age from 120 and using the result as the amount you would invest in stocks, for example, a 25-year-old would invest 95% of their savings in stocks and 5% in bonds. The amount you put in will obviously go up with your age, and you should try your best to stick with the 120 rule throughout each investment.
