People save and invest for different reasons.

 The most you’ll earn on the money you save is the interest added. Saving is perfect for people who don’t want to take any risks with their money, and most savings accounts have easy access or are for a fixed term.

There are lots of different ways to save, but whichever way you choose, the general idea is the same: to build up some money – savings – that can be used, for example, to make a large purchase such as a new car, go on holiday, pay for school fees or cover the cost of expensive times like holidays or Christmas.

Savings also provide security by making sure that some money is put aside for emergencies or unexpected costs.

What’s The Difference Between Saving and Investing?

Saving is a stage on the way to investing. When someone talks about savings and saving money, it could be referring to a tin under the bed or a high interest deposit account. Savings are effectively cash or cash instruments, such as deposit accounts, term bonds etc.

Investing is what you can do with the savings you have created, if you are looking to generate a return on your money that is greater than what is already available to you through your savings instruments.

As a saver, you will be taking very few and very small risks with your money. As an investor you are taking a greater risk. Not only is the return on offer to you likely not to be fixed or guaranteed, the capital sum you invest may be at risk as well.

So why would anyone want to take such risks? The short answer, of course, is because the potential rewards may be greater and you want to generate more from your money than is possible by simply leaving it in a bank or building society deposit account. Investing in cash is not without its risks either because the impact of inflation could reduce the spending power of your savings.

We can help you decide what the best way forward is. There are many, many, potential solutions out there, some more tax efficient than others and it is important that you let us help you make the correct choice.

THE VALUE OF INVESTMENTS AND THE INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.
If you would like to learn more about our services then please contact us.
Call us on 0131 524 8147 or Email: info@fergusonifa.com

Pensions

Saving for retirement can be confusing. There are many options and it is important that the right one or even a combination of options is chosen correctly. The major changes announced in the 2014 budget to the way in which pension benefits can be taken certainly offer more flexibility however it is now more important than ever that the right choices are made . Flexibility only applies where the scheme rules allow and there may be tax consequences to consider.

A Pension is a long term investment the fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.

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Wealth Management

Once you have money it’s important that you protect it against the potential threats of taxation, inflation and investment risk. We can help you ensure that you are making the most of tax efficient solutions and have an investment structure which is efficient.

Tax treatment is based on individual circumstances and may be subject to change in the future. The Financial Conduct Authority does not regulate tax planning.

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Taxation

Understanding taxation means that you will be better prepared to ensure that your finances are arranged in a way that will save you money. If you take action and review your tax affairs you may be able to reduce the amount of tax you have to pay.

Tax treatment is based on individual circumstances and may be subject to change in the future. The Financial Conduct Authority does not regulate tax planning.

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Health Insurance

Health Insurance is probably one of the most important types of insurance you can arrange. Without it, an illness or accident can have serious long-term financial implications for you and your family.

Critical illness plans have no cash in value at any time and will cease at the end of the term. If you stop paying your premiums your cover may end.
Plans may not cover all the definitions of a critical illness. The definitions vary between product providers and will be described in the key features document if you go ahead with a plan.

Income protection plans that have no investment link have no cash in value at any time and will cease at the end of the term. If you stop paying your premiums your cover may end.

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Life Assurance

A Life Assurance policy pays out a sum of money when the person who is covered by the plan dies. The money is intended to pay off any outstanding debts and support your dependants financially by providing them with a further lump sum or a regular income if you die.

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