Planning for your future is a key part of life – whether it is saving for your children’s education, supplementing your lifestyle or planning your retirement.

With interest rates at historic lows, the returns you are getting from savings held on deposits are probably not delivering the long-term returns you need.

Over the last number of years, earnings from investments such as equities and bonds have far outstripped that of cash. That’s why more investors are looking at alternatives to holding money on deposit.

We know taking the first step into investment markets can be daunting, so it is strongly recommended you should seek professional financial advice from a Financial Broker. It is our job to help guide you into making the correct decisions about where to invest your money.

To help you with that conversation, there are some core concepts you should consider.

What kind of investor are you? Deciding what you want to achieve with your investment; what level of investment risk you are comfortable with and for how long you are happy to invest are important because they assist in making decisions about where to put your money. Your financial broker will conduct a risk assessment to see what type of investor you are and will give you a report in writing.

What are the benefits of building a diversified investment portfolio? There is an old saying ‘don’t put all your eggs in one basket’. That applies to investments too but when we talk about it in money terms we call it diversification. There are four main types of investment called asset classes, allowing you invest in a diversified mix.

Your savings goals are usually balanced between short term savings such as a holiday or new car and longer term needs such as children’s education and retirement.

For longer term investing, it is wise to consider what effect inflation can have on your money. Saving for the future is essential if you want to achieve your goals so, it is important you make use of all the options available to you.