As life finally starts to return to a new normal after two years of living through the coronavirus pandemic, many people are now looking to take back some control of their finances and to set up a secure future for themselves.
One way to do that is by investing in a stocks and shares ISA and at the start of a new tax year, it’s the perfect time to open one.
Investing can be a great way to potentially secure a high return on your savings, especially at a time when interest rates on traditional cash accounts are so low.
How to invest with fewer ups and downs
While the world might be in a better position when it comes to the pandemic, global unrest and rising prices at home have created a new environment of unrest.
It’s impossible to avoid these events completely, but it is important to find a home for your savings that’s sheltered from any volatility, both at home and abroad.
Shepherds Friendly have been managing their members’ finances since 1826 and have seen their fair share of ups and downs in worldwide events.
The society was formed on Christmas Day to provide financial security to members who were unable to work due to sickness or injury, and 200 years later, making a positive difference to their members’ lives is still at the heart of everything they do.
During this time, they’ve maintained a commitment to offering simpler savings products to help members to reach their savings goals. Whether that’s buying a house, setting up a child for the future, or building a secure retirement pot.
The stocks and shares ISA from Shepherds Friendly is managed by expert fund managers, with the aim of keeping things as settled as possible. They follow a process called ‘smoothing’ to offer savers fewer ups and downs than other types of investments.
While with any type of investments returns are never guaranteed, the ISA is a savings vehicle which can offer stability in a fragile political and economic climate and a smoother ride than riskier investments.
Your money should work harder when invested
Interest rates have been kept low since the start of the pandemic and it’s impossible to find a standard cash savings account that beats the current high rate of inflation.
Experts predict inflation to rise further, therefore savers may be looking for alternative ways to make their cash work harder for them.
Dipping your toe into the stock market is one way to potentially see higher returns on your savings over the medium to long-term, although this isn’t guaranteed.
Investments aren’t a short-term product and with any kind it’s best to put money away for at least five years. This gives your savings time to grow and to recover from periods where stock markets can tumble when conditions aren’t as strong.
There’s a range of simple investment products on offer from Shepherds Friendly, to help you secure your financial future and to get the best returns possible on your savings. When you join you also become a member of the society and have a say in how it is run.
Start investing for you and your family’s future
From university fees and a deposit for a first home, there’s plenty to save for when it comes to children.
While saving in a cash account until a child turns 18 won’t generate a huge return, as interest is often eaten away by inflation, investing can provide bigger returns over the long run.
Investments aren’t immune to political and global shocks, but at Shepherds Friendly the aim is to keep things as smooth as possible, and to offer more stability than other types of investment.
It’s never too early to begin investing for a child either, and if the money is in a Junior ISA (JISA) it can be used by them when they turn 18.
Shepherds Friendly has a Junior ISA which includes a premium guarantee. This means you’re guaranteed to receive at least what you have invested.*
You’ll also receive any annual bonuses if you leave the money invested until a child’s 18th birthday.
When you take out an investment product with us your capital is at risk and you may get back less than you have put in.
*If you transfer the plan to another provider, or if you leave the money invested for more than three months after the child’s 18th birthday, then we will calculate the value of the investments that you hold within the With–Profits Fund to ensure that you leave with your fair share. If you have been invested through periods of poor investment performance, you may get back less than the current value of your plan. This is known as a Market Value Reduction (MVR).
Shepherds Friendly is regulated by the Financial Conduct Authority and the Prudential Regulation Authority. FS Registration Number 109997.