Discover the Benefits of Independent Investment Advice
What Is the Purpose of Investing?
Most if not all British adults will have some exposure to investments, where that be through their residential property or their work place pension.
Investments tend to carry capital risk (Investments and the income from them may go down as well as up and you may get back less than the amount invested) however in most circumstances over the longer term they tend to reward investors with higher growth than that achieved by cash based savings accounts.
Cash based accounts provide interest, which is usually tied to the Bank of England base rate. The period between March 2009 to February 2022 mostly saw the base rate at less than 0.5%, as a result, this period saw low levels of interest provided by cash based bank accounts, whereas global stock prices saw an increase of 362% during the same period.
History has shown, over the longer term, asset backed investments outperform cash based alternatives. Investing in asset backed savings helps to:
Wealth Growth
Investments, such as stocks, bonds, or property, can increase in value over time, helping to build your wealth.
Income Generation
Certain investments, like dividends from stocks or rental income from property, can provide a regular stream of income.
Retirement Savings
Investing can help build a substantial retirement fund, ensuring you have the financial resources to enjoy your retirement years.
Investments can help protect your money from losing value due to inflation. For example, assets like stocks and property often grow at a rate that outpaces inflation.
Inflation Protection
Whether you're saving for a big purchase, like a house or a car, or funding your child's education, investing can help you reach these goals more effectively than saving alone.
Financial Goals
The earlier you start investing, the more you can benefit from compounding, where you earn returns on both your initial investment and the returns that investment has already generated.
Compound returns
Investing allows you to spread your money across different types of assets, which can reduce risk and improve your potential returns.
Diversification
Tax Efficiency
By investing into a range of different assets, it allows you to utilise more of your tax allowances.
What To Consider Before Investing
Cash however does have a place in our portfolios, before we consider investing, there are several financial considerations we need to make:
Pay off high interest debt, consolidate if required
Have an adequate emergency cash reserve (consider 3 - 6 months take home pay)
Put money aside for planned expenses (such as car purchase or house renovations)
Consider investing in yourself, such as personal development or professional qualifications.
It’s also useful to conduct a household budgeting exercise to see what you are spending your money on and if any appropriate cutbacks or adjustments could be made.
The Financial Plan
Defining Your Investment Goals
Before you start investing, it’s crucial to identify what you are investing for. For example, saving for your children’s education may require a completely different strategy compared to saving for retirement. Defining your goals ensures your investment strategy is aligned with your specific needs and aspirations.
Additionally, consider the time frame for your investments. The longer your investment horizon, the more risk you can potentially take, as it allows you time to weather market fluctuations. Understanding these factors will help shape an effective investment plan.
Assessing Your Investment Risk Profile
As part of the investment advice process, we evaluate several key factors to tailor recommendations to your needs. This includes assessing your investment horizon (how long you plan to invest), your capacity for loss (how much you can afford to lose without affecting your standard of living), and your inherent attitude towards risk based on your experience.
We also remind you of the two most critical moments in any investment journey: when you decide to invest and when you choose to withdraw your funds. Proper planning ensures these decisions align with your financial objectives and risk tolerance.
We can provide investment advice for a variety of different objectives, such as:
Growing your wealth
Saving for retirement
Consolidating your pensions
Funding education
Diversification
No matter your financial goal, Blackstone Wealth can recommend the most appropriate solution for you.
Inheritance tax planning
Death and Taxes
As the saying goes, the only two things certain in life is death and taxes, and they both need to be considered when investing.
As part of any investment recommendation we make, we will consider your wider financial circumstances and the tax implications of your investments. We will always aim to advise on the most tax efficient investment strategy based on the tax legislation at the time.
The 3 main taxes we need to be mindful of is income tax, capital gains tax and inheritance tax. Each investment wrapper (ISA, Pension, GIA, Bond etc) has it’s own tax benefit and drawback, it’s therefore imperative to consider the tax implications of investing to your wider financial circumstances, holistically.
Some of the Investment Solutions We Use
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ISA & LISA
Tax efficient savings with no income tax or capital gains tax on withdrawals
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Pensions
Tax efficient savings primarily used for retirement
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General Investment Account (GIA)
Provides flexibility at withdrawal, a useful planning tool
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Investment Bonds
Provides tax deferred withdrawals, a useful alternative to GIA's
Why Blackstone Wealth?
At Blackstone Wealth, we believe in truly independent financial advice. With access to solutions from across the entire market, we’re not tied to any provider, ensuring our recommendations are always tailored to your unique needs
Respect
We respect every client, no matter their financial literacy or background.
Trust
The foundation of any relationship, we will always act in your best interest.
Service
We will always aim to deliver above and beyond your service expectations.
Value
Our independence enables us to access a wide range of products , ensuring we meet your needs.
Choosing a financial adviser is an important decision, and we understand it can feel daunting. That’s why we offer a free 30 minute consultation to discuss your goals and see if we’re the right fit for you
Ready to get in touch?
Get started on the path to financial success with Blackstone Wealth
Open Monday to Friday 9:30am - 6:00pm
Suite 500, AW House, 6-8 Stuart Street, Luton, Bedfordshire, LU1 2SJ