Cast Study 1
"I want my 6 year-old child to have a great start in life, perhaps to go to University later. So I'm thinking about putting something away each month."
Using the guidelines we've shown you, this investor might ask: - 'what do I want to achieve?'
' I want an investment that gives me a good rate of growth, as this will leave a sizeable lump sum.' - 'How much can I afford to invest?'
' Looking at my monthly outgoings, I can afford to invest £125 a month.' - 'How long can I leave my money tied up?'
' My child is 6 years old, so that gives me 12 years until she'll need money for college. I have plenty of other savings so I can commit to a long-term investment' - 'How much risk do I want to take?'
' I don't want my child to end up with nothing, so I don't want to take too much risk. But I do want to get a better return than a savings account can give me. So I am prepared to take some risk to try and get higher returns' Case Study 2
"I've finished paying off my student loan and have finally managed to save up a bit of cash. I've been thinking about investing it for my future somehow ."
Using the guidelines we've shown you, this investor might ask: - 'what do I want to achieve?'
' I want an investment that will give make my pot of cash bigger in the long-term.' - 'How much can I afford to invest?'
I've managed to save £4,000 in all but want to keep back £1,500 in a savings account, just in case, but I'm prepared to invest the rest. - 'How long can I leave my money tied up?'
I'm not 30 yet, and I want to save this money for my future while I've got it, perhaps even a bit towards my retirement. So I'm looking way ahead, 10 to 15 years at least.' - 'How much risk do I want to take?'
I don't want to risk everything, but I'm not going to need this money for a good while, so I'm okay with a fair amount of risk. Case Study 3
"I've just retired. Over the past 20 years I've built a nice lump sum in an investment. I'd now like this to help contribute towards my income."
Using the guidelines we've shown you, this investor might ask: - 'what do I want to achieve?'
' I'm looking for an investment that'll give me some reasonable income on a regular basis, maybe 2 or 3 times a year.' - 'How much can I afford to invest?'
' The investment I'm thinking of using is worth £30,000 at the moment. I've got my emergency savings put aside as well as some other investments and my pension, so I'd like to use all the £30,000.' - 'How long can I leave my money tied up?'
' I just want to live off the interest from my investment and leave the £30,000 for the kids when I die. So I'm happy to commit to tying up my £30,000. - 'How much risk do I want to take?'
' This income is important to me, so I don't want to lose it. And I don't want my income to be too variable, so I'm looking for something pretty low risk.
|
|
 |
|
Favourites (IE)
Print This
Email This
Previous