Investing while on a high income is an essential part of saving for your future. Perhaps you have dreams of retiring early at 55 or perhaps going into property developing as a sideline? Savings can also be a soft cushion if you fall from your high business position due to an injury or illness. You’d want to protect your family from financial issues, wouldn’t you?
You don’t have to put thousands away every year, any little will help. Interest rates are rather low at the moment and tax will eat away at your money so it makes sense to protect your income with high returns by investing in a savings plan.
Think it will never happen to you and that you would be able to weather the storm even if it did? Take a look at the following example.
Learn from John
John is a 46 year old Marketing Manager from London. He earns around £70,000 a year and is married with 2 children. His wife does not work.
John has always enjoyed the finer things in life and has a ‘live in the moment’ mantra. He frequently lavishes his family with exotic holidays, buys flash cars and only drinks the best champagne on nights out with friends. John has a private pension set up but only pays a basic amount every month. He has no real savings and is paying a mortgage on his home.
If John was to get into an accident on the way home from work one day and could not work his lifestyle would certainly suffer. There would be no more holidays with the family and nights out with friends, with no savings he would not be able to pay his mortgage payments and utility bills. John may have to resort to taking out a loan in order to pay his bills, something he never thought he would have to do.
Plan Your Investment
Don’t get yourself into the same situation as John, protect your income. There are many ways of investment planning, here are a few methods:
• Pension – Invest your income into a Self-Invested Personal Pension or SIPP. These allow you to decide how and where your money is saved. This can be in stocks and shares, commercial or residential property, bank accounts or loans.
• Life Assurance – Critical illness or life cover is an insurance policy which will pay out if you were to die. Monthly fees are relatively low but pay outs can be huge, meaning your family would never have to struggle for money.
• Core Funds – A fund is a managed solution designed around your unique needs. It is the basis of your investment portfolio and will have some basic characteristics including protection from inflation. It will be a ‘buy and hold’ investment and will be relatively sturdy.
See a Financial Planner Today
If you want more information about your financial options, make an appointment with a financial planner today. You could put some savings away for a rainy day as after all, you never know what will happen but you know you will be thankful for saving.
Established in 2005, Bartholomew Hawkins are chartered financial planners who provide independent financial advice to both private and corporate clients across South Wales and the South West of England. Bartholomew Hawkins believe their strength in their business comes from their people who can provide advice where others simply aren’t qualified to. So if you are looking for financial advice, give Bartholomew Hawkins a call today.