For some this 'little and often' means they think they're not in a position to invest – and think that they are just saving but it is possible for almost anyone to build a sizeable pot by investing a small amount regularly, especially if you start earlier.
The key really is to get started - the sooner the better as then your investments will have more time to grow. With such low interest rates it really might be worth considering the stock markets. For those prepared to accept the risks and take a long-term view, investing in the stock market offers the potential for significantly higher returns than cash, albeit with no guarantees, and significantly more risk as you may get back less than you invest. You have to remember that Investments will rise and fall in value over time.
If you had but away £100 a month in a popular fund starting 40 years ago you would have tucked away £48,000 in total, but if you had put it in the right place that investment could be worth so much more with cumulative or compound interest. Please note past performance is not always a guide to future returns and the amount received depends on the investment returns actually achieved. But with inflation also reducing the spending power of your capital over the long term it is really worth investing even if you don't have a 40-year time horizon it's still possible to build a significant sum by investing regularly.
Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE
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