The Beginners Guide To Investments
By Legacy Wealth Planning, Essex
Investing can seem intimidating—jargon-heavy, unpredictable, and often assumed to be only for the wealthy. But in reality, investing is simply the process of putting your money to work to help it grow over time. And with the right guidance, it can be a powerful tool for anyone looking to build financial security and achieve long-term goals.
Whether you're saving for retirement, your child’s education, or simply want your money to do more than sit in a savings account, this guide breaks down the basics of investing—in plain English.
📌 What Is Investing?
Investing means using your money to buy assets that have the potential to grow in value or generate income over time.
These assets might include:
Shares (Stocks): Ownership in a company, with the chance to earn dividends and benefit from growth.
Bonds: Loans to companies or governments that pay you interest.
Funds: Pooled investments managed by professionals (like mutual funds or ETFs).
Property: Investing in real estate for rental income or capital growth.
ISAs and Pensions: Tax-efficient wrappers for your investments in the UK.
🎯 Why Invest?
Saving money in a bank account is safe—but interest rates rarely beat inflation, which means your money could lose value in real terms over time.
Investing gives your money the chance to grow. With the power of compound interest and long-term growth, even small investments can make a big impact over time.
⚖️ Understanding Risk vs Reward
All investing involves risk. Generally:
Higher potential returns = Higher risk
Lower risk = Lower expected returns
Your risk tolerance depends on your:
Time horizon (how long before you need the money)
Financial goals
Personal comfort with ups and downs in value
✅ Tip: The key is not avoiding risk altogether, but managing it smartly with diversification and long-term planning.
🧱 How to Start Investing – Step by Step
1. Set Your Goals
Decide what you're investing for. Retirement? A house? School fees? Your goal will shape your approach.
2. Know Your Timeframe
Generally, investing is best suited for goals 5+ years away. For shorter-term needs, saving may be safer.
3. Understand Your Risk Profile
Your adviser will assess your risk tolerance and capacity for loss to build a suitable investment strategy.
4. Choose the Right Platform
Invest through:
ISAs (Individual Savings Accounts)
Pensions (SIPPs or workplace pensions)
General investment accounts
These allow you to access a wide range of investments tax-efficiently.
5. Diversify Your Portfolio
Don’t put all your eggs in one basket. Spread investments across different assets, industries, and regions.
6. Review Regularly
Markets fluctuate, and your goals may change. Ongoing reviews ensure your investments stay on track.
🔒 How Safe Is Investing?
While the value of investments can go down as well as up, using regulated products and working with a FCA-authorised adviser helps ensure:
Your investments are appropriate for your needs
You understand the risks involved
Your money is held securely in regulated platforms
📌 Always check your adviser is authorised via the FCA register.
🙋♂️ Do I Need a Lot of Money to Start?
No! Many platforms allow you to start with as little as £25–£100 per month, especially through funds and ISAs. The most important step is getting started—and staying consistent.
Final Thought
Investing isn’t about chasing fast money or taking wild risks. It’s about making informed decisions to grow your wealth over time in a way that fits your life and goals.
At Legacy Wealth Planning, we help clients across Essex and beyond take their first confident steps into investing—with clear, personalised advice and full transparency at every stage.
Ready to Start Investing?
Book your free initial consultation with Richard—our experienced financial planner with over 30 years of industry expertise—to discuss how you can invest wisely and tax-efficiently.
📚 Helpful Resources:
*An ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both.
*The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
* A pension is a long term investment the fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.
*HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
*Taxation is not regulated by the Financial Conduct Authority.