Life is busy and it’s easy to put off important admin tasks. This is especially true for those related to your financial future, when the sheer number of investment opportunities feels overwhelming. Retirement savings, preservation funds, tax-efficient savings: what’s the difference?
The good news is that learning how to invest doesn’t have to be complicated. With the right guidance, you can take simple steps today to secure your long-term financial well-being.
Here’s an easy 5-step investment plan to get you started:
1. Understand your financial position
The first step is to clarify:
- Where you are now financially.
- Where you want to be in the future.
- What it will take to get there.
This can feel overwhelming, but a licensed financial adviser can help simplify things. While Hollard Investments provides impartial investment products, we are not authorised to offer financial advice. For a list of registered financial advisers, visit the Financial Sector Conduct Authority (FSCA) website.
2. Define your investment goals
Think about how soon you want to benefit from your investments. This can vary depending on your goals and will affect the type of investment you choose.
Short-term goals, like if you want to save to buy a house, mean it wouldn’t be wise to invest in products with fluctuating values. It would be wiser to look at a cost-effective investment that will grow your money with added flexibility and diversity.
For long-term goals, like saving for your pension, short-term dips don’t matter as much and you should instead focus on growth-oriented, tax-efficient products that reward patience.
3. Match the right investment products to your objectives
Once you know what you want to achieve, match the right investment products to your objectives. Options include:
- Retirement annuities, which allow you to save for retirement in a tax-efficient way.
- Preservation funds, which safeguard existing pension savings when changing jobs.
- Flexible investment plans, which grow your wealth with access to diverse funds.
Each product serves a different purpose, so align your choice with your financial objectives.
4. Request a quotation and understand the costs
Before committing, ask for a clear investment product quotation. Make sure you understand what the minimum lump sum or recurring contributions are, the administration and management costs and if there are any restrictions or penalties for early withdrawal.
5. Complete the application and start investing
Once you’ve chosen your product and received your quotation:
- Complete the application form.
- Submit your documents for processing.
- Receive a confirmation letter with your investment details.
Why it’s never too late to invest
The earlier you start investing, the more your money can grow thanks to compounding returns. But even if you’re mid-career and don’t have investments in place yet, it’s not too late. Starting now can still make a meaningful difference to your financial security.
At Hollard, we offer a range of investment products to help you achieve your financial goals, from retirement planning to flexible wealth-building solutions.
FAQs about investing
What’s the best investment for beginners?
It depends on your goals. For short-term needs, choose safer, flexible products. For long-term goals like retirement, tax-efficient options such as retirement annuities are ideal.
Do I need a financial adviser to invest?
Yes. Investment products are complex, and professional advice ensures you choose the right product for your needs. Always consult an FSCA-registered financial adviser.
Can I start investing later in life?
Absolutely. While starting early has advantages, it’s never too late to put money aside and grow your wealth.
Disclaimer
This article provides general information only and should not be considered financial advice. For tailored assistance, please consult a Hollard-accredited financial adviser or a licensed financial professional registered with the Financial Sector Conduct Authority (FSCA).
