While the economic climate may have been rocky for the past few years, things certainly seem to be steadying themselves now. There is still an element of unease and people are, rightly, still wary about investing too much too soon but there is a solid argument that now is the perfect time to take the plunge and make a solid investment.
Stocks and shares
The stock market is notoriously unpredictable and that is all part of the fun. There is never a good time to invest because the very nature of stocks and shares mean that they go up and down constantly. You could find that you invest your money into a particular company only to see the value of the shares come crashing down the following day.
It’s worth looking at the wider economic climate and keeping up with the latest happenings in politics if you want to try and make a good investment. Being aware of what’s going on in different countries could help you to spot a potential opportunity. If you are right, you could stand to make a lot of money from your investment.
There are many people who would say that while the chips are down, you should hold onto your money. Lots of big companies have gone under in recent years, some of which people thought would easily ride out the economic storm. As a consequence, a lot of investors have lost out on thousands of pounds because what seemed like solid investments went sour.
However, there is a flip side to this. When things look bleak, you may be able to make a fortune. If you pick the right company and buy stocks when they’re cheap, you could find yourself making quite a windfall if the prices rise. Similarly, if you sell when things are looking great, you could save yourself a loss in the future, should the prices drop again.
You may want to opt for a safer option and put you money into savings, rather than invest it in stocks and shares. While the stocks and shares could make you more money, they also have a higher element of risk. Put simply, the higher the dividends, the higher the risk. If you are happy to get a smaller amount back but remove some of the risks, a savings account could be a more logical option for you.
Many savings accounts still offer relatively good rates so you won’t necessarily lose out. It can mean that your money is put away for some time without you having access to it, so this is something to consider. However, in a different way to stocks and shares, as well as property investment, it is usually easier to get hold of it. You may have to close the account or pay a penalty but accessing money from a savings account is often quicker than having to wait on finding a buyer for a property or taking a risk with selling stocks and shares.
There are people who opt to invest in property and now is an ideal time to do it. Although house prices have been rising throughout the year, many of the mortgage lenders state that prices are still significantly lower than the record levels reached just before the financial crisis. With that in mind, investing in property sooner rather than later could pay off.
Buying in a developing market could mean that you make a considerable sum when you come to sell. Although there is a similar element of risk to investing in stocks and shares, having additional properties can give you more of a safety net. Should the market start to flounder, you have the option of being able to rent the property out to bring in some extra cash. This will give you a regular monthly income to cover the cost of the mortgage and any bills or maintenance. Once the price of the property has risen to a level that you are happy with, you can then sell and make back some money, potentially giving you a considerable lump sum.
There are a number of different ways that you can invest your money and each offers a slightly different result. It is up to you to choose which one is going to be the most suitable for you, but bear in mind that investing it somewhere is highly likely to give you a better return in the long term than simply leaving it in a standard, current account.
This article is written by brand journalist, Lauren Sutton, and provided by Guardian Wealth Management, experts in financial planning. For more information on their services and products please call or visit them online.