Basic Knowledge About Saving & Investment
Short term investments are the kind of investments for people who do not wish to have a good return on investments in the future. Short term investment is not for you if you wish to have a good return on investments in the future because there is also a chance that your loss is very high. Aim to make long term investments and your money will accumulate profits over many years, enabling you to go into retirement or middle age with financial stability.
Among the options that you have, the best one that you can get is the tax free investment. There are many savings and investments plans that enable you to save money without paying tax on interest earned. The UK tax free bond is probably one of the popular tax free investment in Europe. In the UK tax free bond, you can pay up to ?25 every month, however, you can start deposit on the bond for as low as ?10. One of the greatest advantages of the bond is that payout is guaranteed. In addition, you get bonuses depending on how well the investment is doing in the market. Compared to other high interest bank savings account that you could earn, the payout given at the end is much higher. At the end of the bond life, you will surely receive high amount of minimum cash as long as you pay high amount monthly.
Family investments should be steady and high enough to support the family in times of financial strain. The security of your job is not guaranteed and you may not have enough cash at hand to start a business when you are laid off. In the future, all of us will going to have our dependents and the best way to secure their financial assistance is by investing in a money-builder account. A long term investment account is an investment wherein you will choose a regular premium that you can pay every month. You will pay double the amount of premiums you started with after five years since the premium increase by 20% every year. Payment plans start as low as ?10 and go as high as ?100.
As long as your income is fit for the highest premium, then go for it, so that you will surely have high returns in the future. Prosperity plans are another type of family investments that will help secure your future. To add up, your account can also earn a bonus every year which can give you a fast growth for your income.