Why Invest?
Investing and financial freedom means something different to everybody:
being able to retire at 50, setting up your own business, paying the mortgage, writing a novel or travelling the world.
To achieve your goals consider how much you will need, and then think about how you can invest your money to help you achieve these goals.
This course will look at:
- Some of the key approaches to investing
- Developing a financial plan
- Understanding the main investment areas: shares, cash, property and fixed interest.
Let's look at the first part in this lesson.
Investing for capital growth
Capital growth occurs when the value of your investment increases. Most people invest for capital growth to build their wealth over time and protect themselves against inflation.
Investing for income
People can seek an income stream from their investments in order to supplement their primary source of income. Many retired people live off the income from their investments (e.g. dividends from shares and rent from property). Fixed interest products such as bonds and hybrids offer a potentially regular income stream.
