I enjoy helping clients understand their investment options by simplifying the financial planning process so they are more confident to pursue their financial and lifetime goals.

Aaron Abraham, Independent Financial Adviser, IFA

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Please note the value of an investment and
income from it can go down as well as up.

New to Investing


Clients often ask us why they should own investments as they are aware of the volatility of equity markets and other investments. The simple answer is inflation.

Inflation reflects the price increase of a basket of goods and services. For example if inflation was 3.5% prices would double every 20 years - unhelpful for people on a fixed income in retirement.

It is usually vital that savings are able to at least keep pace with inflation, otherwise your capital on paper might be growing but its purchasing power is actually diminishing. If your savings can grow at a higher rate than inflation, you will require less savings in the first instance or they will last longer during retirement.

What are Investments?

“Cash is king” is a correct statement for short term expenditure, i.e. for any capital required within the next 3 to 5 years. It is low risk, relatively secure and provides liquidity. However, the returns are low and won’t combat inflation.

A Beginner's Guide to Investing

Below are the three main asset class alternatives for medium or long term investment, normally between 5-10 years. For more information please refer to the Lonsdale Wealth Management - A Beginner's Guide to Investing.

Shares (Stocks/Equities)

A way to purchase a small piece of a company and share in the company profits. A company will usually reinvest part of their profits for future growth and pay a proportion to shareholders as a dividend. Over time, rising profits should lead to a rising share price and dividend payments, which help meet or beat inflation. However, over the short-term prices can fluctuate up or down significantly depending on many external factors.

Fixed Interest Investments

Government Gilts and high-quality Investment Grade Corporate Bonds are a way for the Government (Gilts) and Corporations (bonds) to borrow. They are issued for a fixed term and offer a fixed level of interest (coupon), usually at a higher rate than cash. They won’t beat inflation but are a way to earn more interest than cash whilst taking a low level of risk.

Property

Residential and Commercial Property have the ability to appreciate in value over time. It can also generate an income (buy-to let residential or as a commercial landlord). Therefore, it can be effective as an asset to beat inflation but can also go through periods of decline and at these times can be relatively illiquid.

Why diversify your investment portfolio

Clearly there are risks associated with each asset class, which is why diversifying your investment portfolio and owning a combination of them all is often the most effective way to invest. This is also a reason why it might pay to get financial advice from a qualified independent financial adviser. Before we meet you we would recommend you consider the following questions.

Tax efficient investment products

There are three common tax-efficient investment products - ISAs, Pensions and Investment Bonds. What is key is selecting the most suitable investments and the most appropriate wrapper for your personal circumstances.

Our approach to investment planning utilises a broad range of products which may include:

  • Unit Trusts (active or passive)
  • Gilts & Corporate Bonds
  • Shares
  • Exchange-traded funds (ETFs)
  • Investment Trusts
  • Appropriate tax wrappers such as ISAs, Trusts and Investment Bonds, Pensions, General Investment Account
  • Structured Products

Financial
Planner Checklist

  • What are your financial goals and aspirations?
  • What financial products do you already have?
  • What are your key financial priorities – protection, investment or estate planning?
  • What level of risk are you prepared to take?
  • How much money can you invest or regularly save?
  • What level of returns do you need or expect?
  • What is your investment planning timeframe?
About Lonsdale Services

About Us

We operate as an Independent Financial Adviser offering a completely new and holistic approach to financial advice and financial planning for you and your family, your company and trustees.


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New to Investing


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