How to invest

If you’re new to investments, you’ll likely have a lot of questions, including how to invest. There are a lot of options out there, take a look at True Potential Investor’s overview of some of the main investment methods available to you:

  • Investing in shares — where you purchase a stake in a company.
  • Investing in cash — placing your money in a savings account or ISA is a form of investment.
  • Investing in property.
  • Investing in bonds — where you essentially loan your money to a company or government.

True Potential Investor offer the following investment accounts:

  • General Investment Accounts (GIAs) — you can hold this type of account even if you have a pension or ISA, as they operate outside of tax wrappers. The accounts do not offer tax relief, but they have few limitations on how much you can pay in and when you can access your money.
  • Personal Pensions — it’s wise to start investing in your retirement early, to build up a suitable fund for retirement. The money you contribute to your pension is invested with the aim of growing it over time. There is no limit to how much you can invest in your pension, but you can only invest up to 100% of your income or £40,000 (whichever is lower) tax free in this tax year.
  • Stocks & Shares ISA — a tax-efficient scheme, you can currently invest up to £20,000 this tax year. Because they have the potential to out-perform inflation, they may be a better choice when it comes to growing your funds than standard cash ISAs.

Before you invest, make sure you have a clear goal in mind — whether it’s short-term or retirement savings. Then, select the most appropriate investment option for you and enlist the help of an investment specialist, such as True Potential Investor.

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