Affinity Finance Independent Financial Advisers

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There are two different ways of managing your monetary assets...

· Savings is simply cash, usually held in a current or deposit account with a bank or building society. The main purpose of cash savings is to provide a safe environment for your money with convenient access as and when you need it. The key benefit of a savings account is that you receive a certain rate of interest which is automatically credited to you.

· Investments are literally anything else that money can buy with the intention of making more profit than the original cash itself. On this basis, investments can be both risky and intangible at one extreme; and almost as safe and accessible as cash at the other extreme. Either way, the main purpose of an investment is to beat it’s cash equivalent. The key benefit of such an investment is the creation of additional wealth that you didn’t previously have.

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Savings and investments also carry different levels of risk and reward. There is always some degree of risk, and there is always a reward to be gained. In most cases risk and reward go hand-in-hand, and range from one extreme to the other.

· Risk for most of us means the possibility of loosing what we already have. On this basis we would keep all our assets in cash. But there are also hidden risks such as the diminishing purchasing power of the pound—whereby inflation erodes value; and the risk of what tax may be deducted.

· Reward is what we expect to get in return for something we have done. So the more we do then the more we should get. Therefore if holding cash is doing very little, and buying an investment is doing a lot; then maybe investments are best. But there are two catches here. One is the amount of risk we can sustain; and the other is the law of diminishing returns beyond the most efficient point.

The answer, if there is one, is what feels right for you. On a scale of 1 to 10 how safe do you want to be; and on the same scale, how much money do you need to make?

Text Box: It’s clear that choosing the right investment is not simple, particularly when there are so many providers and products.
Among the decisions you need to make are:

·             How much should I invest?
·             How long should it last?
·             What risks should I expect?
·             Which product is right for me?
·             Which provider is the most appropriate?

Investment Advice

Last but not least is the value of good advice. It’s well worth knowing that:

·             It won’t usually cost you a penny more to take our advice than if you had bought directly from the manufacturer!
              This is because we can fund the cost of our service via a commission offset agreement with you – which amount would otherwise                  have simply been profit for the product provider.
·             There are often exclusive products, which may be unavailable to you directly, but which you can take advantage of through us.
·             And in addition to this, we can assure you that we’ll help you find the right product, from the right provider, at the right price!

Mortgages & Loans

Savings & Investments

Pensions & Annuities

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