Different Ways To Save For Your Future | Where's best to invest? |
 POSTED BY HELEN BEAUMONT ON 28/12/2018 @ 8:00AM
We're all getting older and when we reach the end of our working lives we want to know we'll be comfortable in our dotage. There are many different ways to save for your future, so here are a few to think about ...
There are many different ways to save for your future, each with different risks! copyright: andreypopov / 123rf
You may want to move up on the housing ladder for instance, or start a family. So, what would I consider to be the main ways in which people are building their wealth, apart from the obvious savings account?
Pensions
We are all entitled to our state pension, currently £164.35 per week, but is that a realistic amount for us to live on? Workplace pensions go some way to mitigate this, so for a young person earning between £5,876 and £45,000, this is a great way to build your pension fund as you progress from job to job over the years.
But you can opt out of the Workplace Pension Scheme if you have your own personal pension so as long as you're making regular contributions to it, then you can ensure your later years will be comfortable. Property
The value of pension funds can fluctuate with the markets so many people believe property is a better investment. The rental market in the UK is buoyant and with the current low-interest rates the income should cover any mortgage payments you are making, with a healthy profit left over.
Many banks are offering buy-to-let mortgages, though you may want to keep the payments low by taking an interest-only mortgage and sell the property at a later date to repay the capital. Stocks, Shares and ISAs
If you're ok with a little risk then an ISA is a good thing to look at. Government bonds are the safest option though they do deliver the lowest return because of the lower risk. Shares are at the other end of the scale and can fluctuate wildly depending on the state of the global economy.
ISA gains are tax-free, which is a great reason for choosing them, but they do have limits on the amounts you can save. At the time of writing, the limit is £20,000 per year. Cryptocurrency
There's a lot of talk about 'crypto' these days and a lot of it is baffling. Bitcoin is the most famous of the currencies.
Cryptocurrencies should stabilise eventually and the whole concept of blockchain transactions will become more and more important in all aspects of our society in the years to come. If you've got a spare pot of cash to invest in crypto then do learn as much as you can about it first. There are big gains to be made, but you could also loose your pot quite easily.
If you'd like at different ways to save for your future, or maybe want to review what you're doing right now, then do give me a call on 01908 774323 or click here to ping me an email and let's see how I can help you.
Until next time ...
HELEN BEAUMONT
More about Helen Beaumont ... |  | Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.
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