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In 2022, many UK citizens have decided to start investing their money instead of simply keeping to save it.

This decision often stems from the desire to generate economic growth, since investments are usually seen as a solution to give money the opportunity to mature over time. However, there are several factors to pay close attention to when investing. As a matter of fact, investments are unsafe, as they put your money at constant risk. It is indeed difficult – if not impossible – to predict their outcome, as they are always subject to the ups and downs of the market. Therefore, if you want to start your new financial journey you should be prepared to the chance of getting less than you invested.

As this business is uncertain, it is important to evaluate your overall economic situation before undertaking such a path. If you have little savings aside, or you struggle to keep up with the normal costs of living, investing may not be a beneficial option. On the other hand, you have some extra money aside and you want to give the chance to grow, it is always recommended to proceed with caution and to rely on the advice of an expert on the subject. A financial advisor can in fact help and guide you in the process, by giving you advice on how to choose the investments fields according to your needs, risk tolerance and budget. As a matter of fact, today there are plenty of investments areas to choose from. Let’s see which are the most popular investments vehicles in the UK.

All the investments areas available in the UK

If you live in the UK and you decided to embark on a new investment path, there is a wide range of investments options to look at. Among the most popular there are cryptocurrencies, which, however, have no specific regulations at the moment. That’s why you should carefully gather information and make proper considerations when choosing this product, also by checking the crypto taxation in the UK. Stocks and shares are another common investment vehicle among seasoned investors and first-time ones, since they allow the investor to hold a small piece of a company with the aim to see the value grow up. Then, there are bonds, debt instruments which represent loans made by investors to a borrower. When the bond matures, or reaches the end of the term, the company repays the bond holder. Retirement plans also represent a really popular choice among those who want to invest their money, with the aim of getting an income for when they stop working.

Why are financial planning and advising so important?

Financial planning is the first step of a new investment journey, as it gives you the chance to carefully plan all your moves and to build your investment portfolio according to your needs and risk profile. When creating a portfolio, which is nothing more than a collection of assets and properties on which you’ll base your investments, diversification is really important. In fact, when you put different assets – which are not related each other – in your portfolio, you’ll help minimize the impact of a bad investment on the others. Moreover, a financial counsellor may also be able to help you diversify your financial portfolio. Also, if you’re planning to start this new journey, you’ll be wondering how much of your savings you should put into this project. This is another matter you may entrust to a financial counsellor, who will carefully evaluate your situation and help you figure out the best way to proceed. However, when investing, you should always keep in mind that the higher is the possible economic growth, the higher will be the potential losses too.

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