Income from Investments

Income can be generated from investing in many different types of investment including:

Bank accounts

Building society accounts

National Savings

Stocks and shares

Pooled investment schemes

Some of these just pay interest, but remember that if you spend the interest, the value of the savings that remain will be eroded by inflation. Other investments may provide a better hedge against inflation.

After retirement, it can be useful to arrange investments that have the prospect of increasing your income down the years. This should help to offset the effects of inflation.

The range of savings and investment schemes is huge, and investment management can be time consuming and complex. The performance record of investment managers varies greatly, and selection of a successful investment management team can be crucial to long term success.

For the best prospect of good long-term returns, it it useful to obtain wide diversification of your investments. The correct asset allocation can bring high returns and help to avoid the worst effects of downturns in investment markets.

More information on investments can be found in the investment section of this guide. However, for advice relating to your individual circumstances, just contact us.

You should note that a diversified investment portfolio will normally include investments that can fall in value as well as rise, and that you are not guaranteed to get back the full amount that you invested.