Investment

Investments and savings

Making prudent investment choices can help reduce the financial burden on your shoulders. Contact us today for more details. JWA Financial Planning helps clients based in Cardiff, Newport, Swansea and Bristol.

Principals of Investment 

Personal goals and aims 

Your approach to investment will vary depending on what you are looking to achieve. You may want to focus on building up your wealth, so there is a need for growth in your investment plan. Or, you may want your investment to produce a regular income to support your personal spending.

Risk 
In its most basic terms, this can be expressed as the probability that your investment could be worth less than you initially invested, at the time you choose to cash it in. Cash-based savings cannot fall in value, but how much you can buy with the money can be reduced if prices rise due to inflation. Products and funds that invest in stocks and shares cannot usually guarantee investment performance and so the value can rise and fall.

You can choose varying levels of risk depending on your preferences and timescales. We are experienced in helping you make this judgement.

The greater the risk, the greater the potential for reward, and vice versa.

Simply Investing: Get our free guide to Investing Here

Investment vs simple savings

Choosing between saving money in a simple savings account or saving it in an investment can be difficult one. However, if you have to make a choice, you need to take into consideration your financial situation and also what your goals are. 

Savings accounts
Saving is a good habit to get into. It generally involves putting money into a bank or building society account that is largely risk-free and pays a known, although typically low, rate of interest. These types of account can be great for shorter-term plans and for money that you might need to get hold of in a hurry. However, once you take into account inflation (the rise in the cost of goods and services), it is possible that the purchasing power of your money (what you can buy with your savings) will reduce.

Investing 
That is where investing comes in. Investing for the long term can help you to both save and increase the value of your money.
If you’re unsure about what to select, you can discuss your requirements with one of our Financial Advisers who can help you make the right decision. Click here to request a callback. 

Note: The value of an investment, and any income from it can fall as well as rise and you may not get back the full amount you invest.

What is ethical and Sustainable Investing? 

The primary objective when you decide to invest is simple- to grow your money. However, that doesn't necessarily mean that you're investing for yourself. You can make sure that your money benefits society by investing in ventures that profit not just you but society as well.

Through negative or positive screening, you can compile a list of companies that meet your moral criteria. However, if your busy work schedule doesn’t offer you the time or you don’t have the required knowledge to do the screening, you can let the financial experts at JWA Financial Planning take care of it for you. 

Ethical investing means you only invest in ventures that agree with your moral principles, as opposed to investing in those that don't. Sustainable funds will invest in companies that try to bring a positive change to the environment and act responsibly.

invest in a isa

An ISA is a tax-free saving vehicle which comes with an annual investment allowance limit and may have lock-in terms.

You can split the allowance between a Stocks and Shares ISA and a cash ISA, or you can invest your complete allowance in a stocks and shares ISA or you can invest the whole of your allowance in a cash ISA. 

Whenever you are considering investing it often makes sense to consider a NISA as the first base – ensuring that your investment returns are tax free.

Our Investment Advisers can help choose which type of investment is right for you. Through a short questionnaire we will establish your attitude to risk (ATR) and talk through what this means, then propose a portfolio of funds that best match your ATR, considering fixed interest, property, bonds and equities. 

If you have particular Ethical preferences then we can help you find the investment opportunities that align with your specific concerns.

You can click here to request a chat with one of our Investment Advisers. 

General investment account (GIA)

A General Investment account invests in stocks and shares in the same way as a NISA but does not have the same tax free status and does not have any limit on the amount you can invest. 

Our Investment Advisers can help choose which type of investment is right for you. Through a short questionnaire we will establish your attitude to risk (ATR) and talk through what this means, then propose a portfolio of funds that best match your ATR, considering fixed interest, property, bonds and equities. 

If you have particular Ethical preferences then we can help you find the investment opportunities that align with your specific concerns.

You can click here to request a chat with one of our Investment Advisers. 


tax efficient and High Risk investing 

The thing that makes tax efficient plans highly attractive is that they're not subject to income and capital gains taxes. This means your investments have a greater capacity to grow. 

The most tax efficient investments usually involve much greater investment risk so it is important to be clear about why you might choose these investments. You may wish to reduce your higher rate tax bill or you may be concerned with preserving your wealth for the benefit of the next generation.

Note: The value of an investment, and any income from it can fall as well as rise and you may not get back the full amount you invest.

Venture Capital Trust (VCT)
VCTs are very high risk Investments.

VCTs exist to support entrepreneurial British businesses, often innovative, smaller companies, with the overall aim of driving economic growth. VCTs are supported by the government and offer considerable tax incentives to investors including:

  • Up to 30% income tax relief on the amount invested
  • Tax free Dividends
  • Tax free Capital Gains.
For some investors VCTs are a way to broaden your portfolio but it is very important to bear in mind that VCTs are intended as long term investments and the availability of the tax incentives do depend on your individual circumstances and furthermore they could change in the future. 

JWA advisers have the expertise to advise on VCTs and help you make the choices that are appropriate to your circumstances. JWA works with expert partners who are major players in this type if investment and who have the necessary resources and experience in this specialist area.

Click here to request a chat with one of our advisers about your investments and tax planning.

Enterprise Investment Scheme

EIS is a tax efficient investment vehicle that can provide 

  • up to 30% income tax relief on the value of your investment 
  • up to 100% relief on inheritance tax – the investment is outside your estate for IHT purposes after you have held the investment for two years and provided you hold the shares at the time of your death. Other conditions apply.
EIS is a very high risk type of investment but is appropriate for some people depending on their individual financial circumstances and their attitude to investment risk. 

EIS investors have access to a more diverse set of funds, usually in early stage businesses. 

EIS investors choose this as part of Inheritance Tax Planning (IHT)

Note: The value of an investment, and any income from it can fall as well as rise and you may not get back the full amount you invest.

EIS carries the additional risks that legislation could change in the future, affecting the reliefs available.

JWA advisers have the expertise to advise on EIS and help you make the choices that are appropriate to your circumstances. JWA works with expert partners who are major players in this type of investment and who have the necessary resources and experience in this specialist area.

Click here to talk to one of our advisers about our Inheritance Tax Service.

Contact

To find out more about various investments and savings OPPORTUNIties, call now on  

Technology Business Centre,
2 Alexandra Gate,
Ffordd Pengam,
Cardiff,
CF24 2SA
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