Do You Have Trouble Saving? – No Pain No Gain 

Do You Have Trouble Saving? – No Pain No Gain 

Saving and investing is a lot like doing exercise. It takes discipline and consistency, but as they say – no pain, no gain!. It’s the same when undertaking a new fitness regime. If you fully commit yourself to it, the outcome is very rewarding… But it can take a lot of mental strength. 

Most of us have some investment goals in our life, however vague they are. Even if that’s just putting some savings away for a rainy day! But working out exactly what you want and setting realistic goals is probably a wise idea. 

Types of goals 

The two of the most common types of investment goals are property purchase and retirement plans. What most people don’t know is, the minimum time horizon for any type of investing should be at least five years. But whatever your personal investment goals may be, you should consider the length of time at the outset, because this will determine the types of investments you should consider to achieve your goals. 

Investment Strategies 

Your investment strategies should include various fund types in order to sustain a balanced approach. Maintaining this approach is the key to achieving your investment goals, whilst bearing in mind that at some point you will want to access your money. So, it is vital that you allow for flexibility in your planning. 

Retirement planning 

You can see the importance of shifting goals in retirement planning, where it is common for funds to be geared towards equities in their early stages as this could build capital. When an individual grows closer to retirement age, their pension plan will often lead more towards bonds to reduce instability. 

A pension plan could, for example, start out at 60% equities, 30% bonds, and 10% ‘other’, including real estate. Towards the end of its life, the plan may be 70% bonds, about 20% in equities and up to 10% in cash. This ensures that the person retiring does not become a susceptible to a sudden drop in stock markets just as they are about to cash in on their funds. 

Lifestyle plans 

Investment companies can offer ten-year plans and short saving schemes that could help pay for a luxury holiday or that car you’ve always dreamed of. There are a large number of products that now exist for this, including Individual Savings Accounts that contain certain stocks and shares, depending on your timescale and willingness to accept risks. 

Planning for Your Children

There are various types of savings plans for children that you can invest in from childrens bonds, to long term savings plans that mature at 18 or 21, to junior ISA's.  Something which has become popular in recent years is putting money into a childrens pension - which will revert to them at age 18.  The money put into a pension before their working age still gets the government contribution (althoug there is a limit) and that money can make a massive difference to the end value of their pension.

Whether you are looking to invest for income or growth, Mac Financial can provide the financial advice to help you achieve your goals. If you would like more financial tips to help you grow, follow @MACFinancial on twitter. 


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