Basic Knowledge About Saving & Investment
Short term investments are not an ideal choice for anyone looking to enjoy a good return on investments in the future. This is because even though some of these short term investments may have very high rates of return, their risk of loss is also extremely high. Long term investment is also very ideal in that way you will gain profits as time goes by, enabling you to be financially stable when you go to retirement age or middle age.
Among the options that you have, the best one that you can get is the tax free investment. Investing or saving money without paying tax for the interest that you have earned is probably one of the best part on the tax free investment. One of them is the UK tax free bonds. You may deposit on the bond for as low as ?10 and you can also pay up to ?25 every month. One of the greatest advantages of the bond is that payout is guaranteed. The performance of the investment in the market also matters because you might get some bonuses as a reward. Compared to other high interest bank savings account that you could earn, the payout given at the end is much higher. The higher your monthly payments, the higher the guaranteed minimum cash amount you will receive at the end of bond life.
There are times where families experience financial strain at the most unexpected time, thus, it is important to secure the investment of the family and it must be high enough in order to support the family in times of need. You are not sure of the cash at your hand when you plan to start a business when you are laid off also, the security of your job doesn’t also have any assurance. One way to protect your dependents and secure their financial security is by investing in a money-builder account. This is a long term investment account under which you choose a regular premium, payable 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. If you wish to go for another option in order to secure the financial assistance of your family, then Prosperity plans are also a good choice. Your income can also grow since your account can earn an annual bonus.