Investing; the basics

If you’re looking for better returns and you’ve got a long term goal, where you’d be happy to put your money away for 5 or more years investing could be for you.

How does investing work?

Investing tends to work better over the long term, usually the longer you’re invested the better. If you’re looking for better returns and you’ve got a long term goal, where you’d be happy to put your money away for 5 or more years investing could be for you.

What is an investment?

An investment is something you put money into with the hope that it will grow or appreciate into a larger sum. Traditionally there are four main asset classes;

  • Cash
  • Fixed-interest securities (also called bonds)
  • Property
  • Shares

An asset class is a broad group of securities or investments that have similar financial characteristics.

Investing, is it for you?

Gone are the days of savings accounts with big rates.

If you’re unsure about what you should so with your hard earned savings to make them go further, investing could be for you.

Things to consider before you invest

Emergency Fund

Before you decide on investing it’s important you check you have an emergency fund.

You want to be able to pay for an unexpected repair and have enough money for a few months in a sticky situation. A good rule of thumb is to have three months’ essential outgoings available in an instant access savings account.

Could your loved ones cope without your income?

Before considering investing it’s important to make sure your loved ones could cope without your income. Using some of the money you’d like to invest to make sure you have adequate life protection in place would be seen as sensible financial planning.

Life and protection insurance policies are designed to protect you and your family from the financial consequences of death, a serious accident or illness or unemployment. Protection insurance should be seen as an essential, especially if you’ve got a mortgage and family or people who rely on your income.

For more information on how we can help with your protection needs speak to one of our Protection Advisers call 0345 600 4330 or pop into your local Newcastle Building Society branch for a face to face appointment.

It’s all about you...

Newcastle Financial Advisers take the time to get to know you and understand the reasons why you’re considering investing.

Once you’re comfortable with the amount of risk you’re willing to take a Financial Adviser will tailor a solution for you.

You can lower the level of risk you take when you invest by spreading your money across different types of investments. This is called diversification.

There are risks involved with investing. The value of your investments and any income from them can fall as well as rise and you may not get back the amount you originally invested.


Newcastle Building Society introduces to Newcastle Financial Advisers Limited for advice on investments, pensions, inheritance tax planning, and life cover. Newcastle Financial Advisers Limited is an appointed representative of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.