SAVINGS & INVESTMENTS

We can arrange all manner of Investments for you and will discuss the best to suit your personal need and personal “Attitude to Investment Risk”, prior to making any recommendation.

Investments come in all sorts of forms, and below is a brief description of the most common:

ISA’s: All ISA plans are savings vehicles which provide tax relief on the interest earned. There are 2 types of ISA plans. Cash ISA’s & Stocks & Shares ISA’s

Cash ISA’s: are a type of bank or building society deposit / savings account that you can readily get on the high street without advice. As all interest earned is tax free, the government restricts the annual investment limit. Please call us to find out what the current annual limit is.

Stocks & Shares ISA’s: are also known as equity ISA’s and are a type of Collective Investment. An ISA of this kind can invest the capital into: Shares & Corporate bonds, Gilt Edged securities and similar stock issued by Governments of Countries in the EEA, UK authorised unit trusts that invest in shares and securities, UK open- ended investment companies (OEICS) and UK Investment trusts. Similar to the CASH ISA, there is an annual limit set by the Government. As a Stocks & Shares ISA is investing into Companies & Governments bonds, there is an element of risk in the investment.

If you wish to draw money from your ISA, you cannot re-invest it in the current year if you have exceeded your limit.

Collective Investments: The main forms of collective investments are: Unit Trusts, Investment Trusts, Investment Bonds and Open Ended Investments (OEICS).

Unit Trusts: A unit trust is a pooled investment created under a trust deed. The unit trust will be divided into units, with each unit representing a faction of the trusts total assets. The unit trust manager is obliged to buy back units form investors should they wish to sell. There are 2 types of charges, the initial charge and annual management charges. Unit trusts off the following units:

  • · Accumulation Units, which automatically reinvest any income generated. This would suits someone looking for capital growth.
  • · Distribution or Income Units, which split off any income received and distribute it to unit holders.

Investment Trusts: These are collective investments but they are not unitised. Despite their name, they are not Trusts but in fact public limited companies who invest in Stocks & Shares of other companies. Investing in an Investment Trust is achieved by purchasing shares of the investment trust company on the Stock Exchange. In order to cash in the investment it is necessary to sell the shares to another investor.

Investment Bonds: These are similar to Unit Trusts but are available from Life Assurance Companies and they buy a policy equivalent to a set number of units. The unit prices fluctuate and the value of the bond goes up and down.

Open Ended Investment Companies (OEICS): OEICS share a number of characteristics of Unit Trusts & Investment Trusts. They are a pooled investment that buys and sells the shares of other companies and deals in other investments. The OEIC will issue shares that can be bought and sold by investors.

Bonds: Grouped under the general category called fixed-income securities, the term bond is commonly used to refer to any securities that are founded on debt. When you purchase a bond, you are lending out your money to a company or government. In return, they agree to give you interest on your money and eventually pay you back the amount you lent out. The main attraction of bonds is their relative safety. If you are buying bonds from a stable government, your investment is virtually guaranteed, or risk-free. The safety and stability, however, come at a cost. Because there is little risk, there is little potential return. As a result, the rate of return on bonds is generally lower than other securities

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Financial Resolutions Limited is authorised and regulated by the Financial Conduct Authority. Companies House ref; 06543778.
Our location and registered address is 1a High Street, Bovingdon, Hertfordshire, HP3 0HG