The Benefits of Wealth Creation
The ultimate goal for most people wanting to build wealth, is financial independence. That is, no need to borrow money, and no need to depend on employed or self-employed income. Perhaps being able to retire early, and being able to afford the cost of living, and maybe some luxuries, without having to worry about money, or losing your job. If this were your main goal, and you focussed exclusively on it, there is no doubt you would greatly enhance your chances of achieving it. It might be possible to achieve financial independence at a relatively young age. However, this may depend on your starting point, or how many sacrifices you are prepared to make.
Creating a Plan
You are more likely to succeed if you know where you are going. Knowing your destination, and planning how to get there are the all important first steps. Then, with independent financial advice, the right type of investments can be identified, and a plan can be tailored to your individual goals, and circumstances.
Making Your Money Work for You
The aim of an investment is to make your money work for you over the longer term, and to provide the opportunity of growth on your capital in the most tax efficient way. You cannot achieve growth on capital that is sitting in cash. There is always risk with any investment, but this has to be balanced against potential reward. Investments can be cautious, right through to speculative, at the other end of the scale. The amount of risk depends on a number of factors including your attitude to risk, your overall personal, and financial situation, and your goals.
Choosing the Right Type of Saving Plan or Investment
This is where Edward Wilson Financial LTD can help. The most tax efficient investments are pensions, and ISA’s, although there are other investments that may be considered, including Unit Trusts, Investment Trusts, OEIC’s, and Onshore and Offshore Investment Bonds, to name but a few. Choosing the right type of investment, and the right investment funds is crucial, and it is usually wise to consider a diverse portfolio of assets, not just shares. It is important to remember that all investments carry risk. Their value can rise or fall, and is not guaranteed. You may receive less back, than you invested. By contrast, cash accounts do not carry any investment risk, but the real value of your savings is at risk from the effects of inflation.
What Wealth Creation Is Not
In today’s fast paced world, it is all too easy to depend on credit. The need for instant access to the latest gadget, phone, car etc can be really compelling, and easy access to credit cards or loans can provide the instant answer. Offers of instant credit bombard people every day. Live now, and pay later tends to be the norm. Long term, over indebtedness is a recipe for disaster and unhappiness. The short term joy of retail therapy is often replaced with long term financial worry. If debt gets out of control, it can be hard to make ends meet. It can even lead to problems when trying to get onto the property ladder if you have no savings, and a lot of debt. Therefore, the first step in creating wealth, is to keep control of spending and debt.
For a free initial consultation, call Eddie now on 01224 784 626, or use the contact form on the website.
The FCA does not regulate National Savings Products & some forms of Offshore investments
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