Long Term Investments
Having put some money aside for your cash reserve and short term money, any excess you have can be invested for longer term objectives such as a retirement income or just a higher return than you can get in the bank on cash deposits.
Generally this is money that you will not require access to for the foreseeable future and so can leave it to grow over time.
Your pension or an ISA are tax efficient ways to save for long term investments and can be funded by monthly contributions or a lump sums as and when they become available. This is because any gains made on your investments within these are free of capital gains tax. Plus any contribution by you to a pension plan will mean the taxman pays a tax rebate straight in to you plan.
Once you’ve established the amount that is right for your long term investments both in terms of a total amount as it stands and the regular contributions you would want or need to add to it on a monthly basis you are ready to consider how your long term assets should be invested.
Structuring your investments is one of most important aspects of your long term portfolio. Having a sound investment strategy can make a big difference in how successful your investments are for you.
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Tax levels, bases or reliefs referred to are those currently applying but are subject to change. The tax treatment of investments will depend on the individual circumstances of the investor.
