Money you will not need soon.
WHAT TO ESTABLISH FIRST
That short-term needs are covered.
WHY
Long-term commitments that must be broken early cost money.
WHAT TO ESTABLISH
When you will need the money.
WHY
It determines what is appropriate.
WHAT SHORT PERIODS SUIT
Accessible savings, accepting low return.
WHAT LONGER PERIODS PERMIT
Arrangements with higher expected return and more fluctuation.
WHAT TO UNDERSTAND ABOUT RISK
Higher expected return always carries higher risk of loss.
WHY IT DESERVES STATING
Anything presented otherwise is misrepresented.
WHAT TO ESTABLISH ABOUT ANY ARRANGEMENT
What it invests in What the charges are How you access the money What the worst outcome could be
WHAT TO BE CAUTIOUS OF
Guaranteed high returns Schemes requiring recruitment Investments you cannot explain to someone else Pressure and time limits Anything based on a personal relationship rather than documentation
WHY THAT LAST POINT
Trust in the person is not evidence about the investment.
WHAT TO VERIFY
That the provider is licensed and the product is registered.
WHAT TO ESTABLISH ABOUT DIVERSIFICATION
That everything is not in one thing.
WHY
Concentration is what produces total loss.
WHAT TO CONSIDER
Contributing regularly rather than in large amounts at once.
WHY
It removes the need to judge timing.
WHAT TO ESTABLISH ABOUT RETIREMENT
Whether any provision exists through employment What you would live on
WHY IT DESERVES THOUGHT EARLY
Time is what makes small contributions meaningful.
WHAT TO AVOID
Withdrawing long-term savings for short-term needs.
