“I have had the pleasure of working with Alex over the past 2 years. Where Alex and Financial Relationships LLP excels is in their personable and professional approach to private investments, fund management and pensions.

Removing the uncertainty, providing clarity and simplicity combined with sharing personal and market knowledge across all investments.

Trusting opinion and above all guidance without any pressure to decide on a personal action plan. Sound business understanding and commercial acumen.

Alex and his team are exceptional and I wouldn’t hesitate to recommend Alex and their services.”

Kevin Durrant

Investments & Savings

Within personal finance the act of saving corresponds to nominal preservation of money for future use. A deposit account paying interest is typically used to hold money for future needs, i.e. an emergency fund, to make a capital purchase (car, house, vacation, etc.) or to give to someone else (children, tax bill etc.).

Within personal finance, money used to purchase shares put in a collective investment scheme or used to buy any asset where there is an element of capital risk is deemed an investment.

This distinction is important as the investment risk can cause a capital loss when an investment is realized, unlike cash saving(s). Cash savings accounts are considered to have minimal risk.

In many instances the terms saving and investment are used interchangeably. For example many deposit accounts are labeled as investment accounts by banks for marketing purposes.

To help establish whether an asset is saving(s) or an investment you should ask yourself, “where is my money invested?”. If the answer is cash then it is savings, if it is a type of asset which can fluctuate in nominal value then it is investment.

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