Is it Ever Too Early to Start Thinking about a Savings Investment Plan
Given the current economic climate, it’s understandable that most people are cautious about investing at the moment. The following article, however, outlines some very compelling reasons why you should be considering investment deals early in your life. Here are some top tips to help you understand why you are never too young to start investing.
Learn from your elders
Many experts consider the ideal time to start investing to be 23 years old. However, a recent survey indicated that the average age at which men begin to start seriously considering it is 29. Women leave this later with the average age at 33. The same survey revealed that many of the older people interviewed stated that they regretted not starting their investment planning earlier. The older they got, the younger wished they had started, with those in their thirties stating that the ideal age to start is 24, while those in their sixties opted for just 22.
Low interest rates
With the interest rates offered by most current accounts and even ISAs pitifully low at the moment, investing money in investment plans could be a wiser choice, and offer a much better return on your money.
Decline of the property market
For many years, the property market has been where most people invested heavily, with great returns. Today, with access to mortgages limited, and a stagnant market for sellers, people are investing in other areas such as stocks and shares.
Government cutbacks
The rampant cuts in public sector spending have hit many people hard, particularly those with pensions. This begs the questions about how secure our state payments are. To avoid any doubt, now is the time to start making your own provisions for retirement.
Tax savings
Certain investments benefit from favourable tax breaks. For example, many National Savings & Investment products, such as Premium Bonds are not subject to income or capital gains tax. This makes them a tax-efficient, not to mention secure investment.
Wide Portfolio of Investment Funds
One of the best pieces of advice for the young investors is by having a range of investments in different areas. That way, you are less exposed to market conditions and unforeseen circumstances and avoid ‘putting all of your eggs in one basket’. In the trade, this is known as ‘diversification’ and the best investment plans include some form of this.
Please bear in mind : A detailed knowledge of the savings and investment market can help you develop your resilience, but advice should also be sought, particularly if you are becoming an investor for the first time. Search investment blogs and learn from the experts how to keep your cool.
Please bear in mind: A detailed knowledge of the savings and investment market can help you develop your resilience, but advice should also be sought, particularly if you are becoming an investor for the first time. Search investment blogs and learn from the experts how to keep your cool.
