Reach your financial goals with investments

There are many types of investments to choose from

07:07 29 August 2013

The world of investments is diverse and navigating it can seem intimidating at best. If you have goals of earning a smaller monetary amount you don’t need to worry as much, but if you’re working towards a retirement fund that will support your current lifestyle and any economic fluctuations that occur in the future, you’re probably a little nervous about making sure you meet your goals. Here are a few things to know about investments.

• Short term needs—if you are saving up for something happening in the near future such as a vehicle or home purchase, you won’t have time to invest much in things like stocks and be certain of an adequate return. It’s a better idea to use a Cash Independent Savings Account that will allow you a better rate of return than you would receive with a regular savings account.

 

• Long-term needs—these could vary in purpose but many times involve retirement, or acquiring enough funds to help family members and heirs for the future. There are a number of ways to make investments when it comes to long term needs.

 

• Stocks and Shares Independent Savings Accounts—these accounts offer a way to achieve a higher rate of return on investments while avoiding certain taxes that normally would be assessed. There are annual caps on how much you can deposit into these accounts, so you might need additional savings methods.

 

• Both endowment policies and investment bonds cater to providing income throughout the remainder of a person’s life, or funds are paid out once a person is deceased to cover the costs of making all the necessary arrangements.

 

• Unit trusts are way to lessen the risk involved with making stock market investments. Your resources are pooled with many other people and then the collective funds are spread across a variety of funds to ensure growth.