Many think investing is not for them; that they don’t have enough wealth. But even putting aside a small amount each month could help guarantee a comfortable and safe future.
It’s a sensible decision to start putting money aside as soon as possible, but if you’re not convinced, here are just five of the top benefits of investing:
1. YOUR MONEY GROWS
Investing can lead to plenty of growth over time. Making early contributions no matter how small for a longer period of time, can help you gain more from compound interest.
Compound interest can be extremely powerful in the long run. This essentially means gaining “interest on the interest” year-on-year of a deposit, so the end result would potentially more than double any simple interest added. The earlier you get started, the greater your chance is to take advantage of this. Regular investments in a portfolio, or a retirement account can lead to huge compounding benefits. Sit back and let compound interest do the hard work.
2. TAX – FREE INVESTING
The starting rate for savings is aimed at supporting savers, including those on low incomes. For 2019-20, the starting rate is £5,000. This means, that up to £5,000 of the interest received from savings is tax-free. So, you could be earning up to £17,500 a year and still be eligible for this starting rate.
Some savings products pay interest that is always tax-free, regardless of how much you earn or other savings interest you are receiving. One of the best ways to invest is through an ISA (Individual Savings Account),for which the allowance for the 2019-20 tax year is £20,000. You can still save tax free even if you are an additional rate taxpayer.
3. FINANCIAL PLANNING AND SECURITY FOR YOUR FAMILY
Setting aside money can be a significant benefit for your family and the future milestones they may hit. Events such as flying the nest, starting higher education and new family additions can all be supported with your financial security. Financial preparing for the inevitable is also incredibly beneficial for your family members, leaving behind support even when you’re gone. Find out more about family planning, will writing and how to avoid inheritance tax in our handy guides on our Adviser site.
4. FIND FINANCIAL PEACE OF MIND DURING TOUGH TIMES
It’s always reassuring to know that you’ve got a safety belt. So why would you ride the rollercoaster of life with nothing? Having some money put aside ready for the inevitable ups and downs that life throws your way can be incredibly comforting, however some accounts have a lot of restrictions, meaning this money is not accessible when needed. With i-stock, you can withdraw your money 24/7; ready to help you in your times of need, or your times of celebration.
5. SAVING FOR YOUR FUTURE
As Warren Buffett famously says, ‘Investing is a long game’. In the current social media age, we only have access to peoples life highlights and successes and in some cases, it may seem like wealth and riches can come overnight. Although some are lucky to have made the right moves at the right time, this is unlikely to be the norm. The truth is that building wealth and assets takes time. Our blog “Tree and Shade”explores this topic in much more detail.
You will not be seeking the rewards in two weeks, rather 5 years or longer. This is great way to save for a down payment on your house, save for kids and for the exciting days that retirement brings. The more money you save for later life, the more adventurous you can be.
If you’re still feeling unsure about whether investing is for you, i-stock can help. With i-stock, the process of investing runs alongside everyday life. The app aims to present a revolutionary way to invest, with a fund that protects 90% if its highest ever value. It also provides 24/7 access, daily monitoring and no-account fees.
Start your investment journey today.