Throughout the course of 2023, local financial planners, Holland Hahn & Wills, will be exploring the ways in which people can improve their investment experience through a series of articles. 

Katie Lovatt, the firm's head of marketing and operations, today focuses on the benefits of investing but highlights the key factors to bear in mind before exploring the avenue.

At Holland Hahn & Wills, we think the advice from the FCA sums it up pretty well. 

"Investing can bring you many benefits, such as helping to give you more financial independence. As savings held in cash will tend to lose value because inflation reduces their buying power over time, investing can help to protect the value of your money as the cost of living rises." 

However, benefits of investing are most likely to be seen over the long term, so it is advisable to make sure your finances are in order before you start. 

Firstly, consider clearing any debt before investing 

Ideally prioritise paying off higher rate debts first and all other loans before making any investments (except pension investments). If you do have loans, organise your payments to avoid missing due dates which can incur unnecessary charges and damage your credit rating. 

Secondly, Keep a Rainy-Day Fund 

At Holland Hahn & Wills we ensure our clients have an emergency cash fund to cover unexpected eventualities such as redundancy, poor health or a hole in the roof. This can provide peace of mind and minimises the chance of having to sell investments when markets are down. 

Thirdly, Contribute to your Pension 

Regular pension contributions from an early age can make a substantial difference to your retirement fund. Although retirement may seem a while away, there are tax benefits to paying into a workplace pension which is arranged by your employer. Granted, you won't be able to access this money until you reach retirement age. 

If you are self-employed, you would be wise to set up a flexible personal pension. 

If you can answer yes to the above? Now may be the time think about investing. 

For more information on how we could help you, please contact our friendly team. 

A chat with Holland Hahn & Wills Financial Planning is free and could save you a lot of worry. For a second opinion or more details call: 020 8943 9229, or email [email protected]