Two People Standing On Cliff in Yorkshire

Five Investment Options for Your Portfolio

Choosing to expand your portfolio is a great way of securing a better financial future for yourself and your family.

Choosing to expand your portfolio is a great way of securing a better financial future for yourself and your family.

Find an adviser

Five Investment Options for Your Portfolio

Choosing to expand your portfolio is a great way of securing a better financial future for yourself and your family. You might already have a big pot of savings, but you aren’t making the most of the cash available to you. Investing is a great way to make your dormant cash work for you by building up your savings into greater profits and achieving better financial well-being. 

This article will help you understand your savings goals and provide you with the five best investments for savings that you can make. 

Understanding Your Saving Goals:

Before you decide to expand your portfolio, you need to understand your savings goals. What is it that you are looking to achieve in the future with your money? Do you want to retire early, shore up your emergency fund, or even purchase a house? 

On top of that, you need to analyse what sort of lifestyle you want to lead and if you can handle risk and short-term shocks to your financial well-being. 

To create the best savings plan for you, a good rule of thumb is to keep your safer investment options for your retirement goals; and expand into riskier investments for other long-term financial goals. Another thing to remember is that, much like saving for a pension, the earlier you start investing, the longer you have to benefit from compound interest or market increases. 

How to Start Saving Money Effectively:

Once you have your goals in mind, it is time to set a realistic budget for yourself. Take a look at your income and outgoings, then look at how much you can afford to put away in savings. If you want to increase the amount you put away, then you can also identify potential areas for savings in your day-to-day life. Cut back on subscriptions and reduce your luxury items.

If you are overwhelmed at this point and are wondering how to start saving money effectively, don’t worry, you aren’t the only one. It is always good to have a helping hand, someone who can objectively look at your budget and assist you to make it as realistic as possible. The Openwork Partnership is a great place to start, with experts up and down the country, you can find a financial adviser near you. 

With a financial adviser, you can work out your schedule for setting up regular transfers to different accounts such as your savings, investments, or even a pension scheme. 

Five Investment Options for Your Portfolio:

    1. Stocks: We have all heard of stock investing and most of us know the risks of purchasing shares on the stock market. Market fluctuations add uncertainty, however stocks offer a high-reward potential and are one of the best long-term investments out there. By choosing to invest in stable growth companies, you ensure that your money will give you good returns in 20–30 years. Make sure to choose companies that you believe in, as you will ultimately be owning a piece of that company. 
    2. Bonds: Bonds might feel similar to a stock investment, but they do work differently. Instead of owning a piece of a company, you are instead giving a loan to a corporation or government that wants to raise cash. The loan gets paid back in instalments with interest. This type of investment is much lower risk than stock investing, but the potential for growth and return on investment is also much lower. 
    3. ISAs (Individual Savings Accounts): ISAs are savings accounts that offer tax-free interest on your savings. They normally have an interest limit, but they offer flexibility in the different types of accounts. You can have cash ISAs, Stock and Share ISAs, as well as Innovative Finance ISAs (IFISAs), which are much more risky.  
    4. Property: Investing in property is a great way to generate income and investment appreciation. You can invest in property through a Buy-to-Let Mortgage, where you are the owner of your property and you receive the rent. Or, you can choose to invest in a REIT (Real Estate Investment Trust), where you do not own any property, but instead, you earn dividends from a corporation that owns, manages, and maintains properties. 
    5. Pension Schemes: Maintaining a pension is one of the best investments for savings that you can do throughout your life. There are many pension schemes out there and, if you need help choosing one, reach out to The Openwork Partnership today. Pensions offer a way to save for retirement in a tax-efficient way, with contributions from you and your employer in some cases.

Maximising Your Pension: A Smart Saving Strategy:

The most common financial goal is to make sure you have enough funds for retirement. With pension schemes available in every workplace in the UK, you will always have options for increasing your retirement savings. 

However, pension schemes work best when maximised by a diverse portfolio. Stock investing can give you some of the best long-term returns, whilst property is a great, tangible asset that you can sell for an influx of cash once you reach your golden years. To retire comfortably and to be able to maintain the lifestyle you want, start your investment journey as early as possible. Get advice on the best investments for savings by chatting with one of The Openwork Partnership’s financial advisers today. 

Conclusion:

The best way to achieve your financial goals is to diversify your portfolio by investing your savings and bringing in well-earned returns. You need to take a look at your monthly income, and your expenditure, then work out a realistic plan best suited for you. 

A financial adviser can help you to work out which combination of investments works best for your goals. You can choose to invest in stocks, bonds, ISAs, property, or contribute more into your pension scheme. To help you with this choice, you can book a consultation with The Openwork Partnership, ensuring you feel more confident about your financial future. 

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested. Past performance is not a reliable indicator of future performance and should not be relied upon.

Try one of our calculators

Mortgage Affordability Calculator

Find out how much you may be able to borrow for your mortgage.

Mortgage Affordability Calculator

Find out what life may have in store

We all hear news of a friend or a relative who is off work for a few months, orhas been diagnosed with a serious illness. It's shocking and all the more difficult to imagine it happening to us.

Protection calculator

Inheritance Tax Calculator

The Inheritance Tax (IHT) Calculator allows you to find out the approximate IHT liability on your estate

Inheritance Tax Calculator