Can your money really work for you?
Most have heard the phrase 'don't work for your money, let your money work for you,' but what exactly does this mean and is it true? Invest is the most common answer you'll get, that's fine but how and where?
Trailblazer spoke to Alex Barnes, Managing Director of AJ Barnes Financial Planning to see if your money really can work for you. Alex has over a decade in financial services and has provided expert advice to private clients, businesses, law firms, schools and many more. In 2017 Alex accepted the prestigious invitation to join St. James's Place Wealth Management as an associate partner, this is when he formed AJ Barnes Financial Planning, which is really passionate about giving the right advice for the right person.
Alex explained that giving money a true “purpose” is the heart of good financial planning i.e. what are we looking to eventually achieve? How far away is our goal? What is our “why”? Once you have identified a goal, a timescale, a target then labeling the money for each milestone is where we begin.
If our goal is short term (1-5 years away) then we need the money to be secure in a deposit account but shopping around to get the best deal will help our overall plan.
If our goal is medium term (5-10+ years) then a well-diversified investment fund utilizing your tax allowances remains a suitable strategy. “Never have all your eggs in one basket” rules here!
Other questions obviously raise their head around tax – are we making the most of the allowances available to you? Everyone in the UK has a £20,000 allowance for ISAs which could fit the bill for either short- or medium-term investment depending on which type of ISA you use. Pensions are a firm favorite as well offering a tax efficient home for money with an incentive at the beginning for every £100 you pay into a personal pension, HMRC will add £25 if you are a basic rate payer which only increases the more you earn.
At St. James’s Place we believe that our ability to tailor solutions to an individual’s needs and attitude to risk means your income investments are in good hands. The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.”
A J Barnes Financial Planning Ltd is an Appointed Representative of and represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the group's wealth management products and services, more details of which are set out on the group's website www.sjp.co.uk/products. The titles 'Partner' and 'Partner Practice' are marketing terms used to describe St. James's Place representatives.