Steve already has some savings. He’s never invested before, not because he couldn’t afford to he just never got round to it. Steve has kids and has been spending his money on his family. He’s already sorted out his insurances to protect his family and he now feels he is ready to start investing for his future as he won’t need access to this money for the next few years.
Steve wants to get into the habit of putting money aside monthly. Steve is looking to build a pot of money for his future.
Steve has been checking out some specialist money advice websites and he now knows that if he started investing his money he has the potential for greater returns than a traditional savings account. However he realises the returns are affected by how his investments perform and that the value of his investment could go down as well as up over time. However he is prepared to take some risk.
Steve knows there are tax efficiencies when you save or invest in an ISA and that this favourable tax treatment could change in the future. He also knows that each tax year there are limits to how much he can pay in.
Steve is now considering opening a Stocks and Shares ISA and making regular payments into it each month.
If he needs to he knows he can change or stop his monthly payments at any point.
Steve is an illustrative character designed to highlight why and how people approach investing. His financial situation, objective, knowledge and approach are fictional and you should always consider your own before investing.