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 five 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 five 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

Investing, is it for you?

Gone are the days of savings accounts with big rates.

If you’re unsure about what you should do 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.

 A good rule of thumb, is to have three months’ essential outgoings available in an instant access savings account. This should allow you pay for an unexpected repair or manage for a few months in a sticky situation.

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, illness or unemployment. Protection insurance should be seen as an essential, especially if you’ve got a mortgage and loved ones who rely on your income.

For more information, get in touch with Newcastle Financial 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, life and protection insurance, and inheritance tax planning. Newcastle Financial Advisers Limited is an appointed representative of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.