A financial expert helps people with their investments.
I am often asked for advice on investments. People want their money to
make a profit and to increase in amount. The average investor wants to make
a quick profit in a short time. However, it's a fact that he cannot expect a
maximum profit with a minimum risk. He doesn't want to lose his money
when he is investing it, as most of the investors also want to save money for
their retirement. Below are some guidelines on how they can invest their
money.
An investor may put his money in a bank. He can open two kinds of
accounts. If he puts the money in a deposit account, he is paid interest.
However, his money will remain there for a period of time and he will not be
free to draw it out at any moment. If he does, the bank will not pay him any
interest on his money. If he opens a current account, on the other hand, the
customer can obtain his money whenever he likes, but will not be paid any
interest and therefore, will not pay any taxes. So it is advisable to have
enough money in a current account to spend on immediate expenses and to
take advantage of the interest rates by keeping the rest in a deposit account. If
you can put aside - save - money regularly, try this. Deposit accounts are
taxed, however, and they are not very good investment if the cost of living
rises fast; that is, if the inflation rate is high.
An investor could join the government's 'Save As You Earn' scheme,
which is the safest method of investment. If he saves money regularly and he
doesn't want his savings to lose value as the cost of living rises, he should
join this scheme. This offers him a tax-free interest. However, he must
promise to save a certain amount every month for at least five years.
He could invest in the stock market. The stock market offers investors the
opportunity of making quite good profits within a short time. But that kind of
investment is very risky as there can also be heavy losses in a very short time.
Since the 1960's, profits made in the stock market have been taxed, too.
Unit trusts are a way of reducing the risk of losing one's money. The
investor entrusts - gives - his money to experts and they invest it for him in a
number of different ways by buying shares. If the experts choose carefully
and wisely, unit trusts are more likely to guarantee him a profit.'
He could buy property as it usually increases in value more quickly than
the cost of living. But if you still have to sell your house, remember that you
will have to pay taxes for the money you receive for it. If you sell someone a
house, you can only escape taxation if you are living in it at the time you are
selling it.
