How long should I invest for?

We believe leaving your wealth invested over longer time periods has the greater potential for it to maintain and grow its value. In investment terms this tends to be five years or more.

Although our focus is on long-term potential returns we still watch what’s happening on a day-to-day basis. We’ll use our expertise to try and take advantage of short-term opportunities with the aim of generating additional returns, or to protect its value if we see potential risks on the horizon.

Just as we’re advised not to put all our eggs in one basket, it’s very unlikely a single investment type (shares, for example) will give you the best performance all the time and so we also recommend holding a broad spread of investments.

Finally, any return you expect to receive from your investment should match the degree of risk you take to achieve it. So we work with you to find the right strategy. But remember, all investments carry a degree of risk and results cannot be guaranteed and you may not get back your initial investment.

Are onshore bonds tax efficient?

Onshore bonds are a type of life insurance policy that allow you to invest tax efficiently. This is because any income or capital growth within the bond is taxed at the corporation tax rate of 20%. HMRC regards this as equivalent to the policyholder having effectively paid capital gains tax (CGT) and basic rate income tax.

Basic rate taxpayers have no further tax liability when withdrawing from an onshore bond.

You can also withdraw up to 5% of the initial premium every year tax free as this is simply taking back your funding capital. Anything above this is taxed alongside your other income so for a higher rate tax payer this could mean an extra 25%. The bond pays out any remaining balance either on the maturity date or when you die and any gains will be taxed as income.

They usually comprise between 20 and 100 segments, which can be cashed in at any time; either singly or in total. The same rules apply: any profits are taxed as income if you are a higher rate tax payer.

Can protection products reduce inheritance tax?

A life insurance policy could cover the cost of an inheritance tax (IHT) bill rather than it being paid from your savings or sale of assets when you die. Even better, if you place the policy in trust, it will be paid outside of your estate, therefore not incurring any further IHT.

The downside of placing your life insurance policy in trust is that it can be difficult to amend or remove from trust once it's set up. There are circumstances under which changes to the policy can be made but you may risk invalidating the cover. Certainly, it's best to consult your solicitor before making any alterations to your policy.

Life insurance is designed to pay out a lump-sum when you die. You can state that you wish your loved ones to use this money to pay part or all of the IHT when you die which could provide valuable peace of mind.

What's the best way to save for my children?

When it comes to investing for children, time can be even more important than money.

Thanks to the power of compound interest, the sooner you start investing, the more potential there is for your money to grow. Compound interest is like growth on growth, through reinvesting interest rather than paying it out. Although as with all investments there are risks so this is not guaranteed.

Simply putting money in a bank account will not necessarily have the same effect, as inflation can erode the value of money. And with low interest rates, cash accounts are currently likely to give lower returns.

Before making a decision, you should consider the pros and cons of savings vs investing. Savings have minimal risk and can be there for your short time needs or used as emergency funds as well as any planned spending. They still have the potential to grow steadily but could be affected if the rate of return is lower than inflation.

How do I know how much I'll need when I retire?

The answer to this question will be different for everyone and depends on what you want your retirement to look like. Start by considering what your retirement goals are and then think about what the lifestyle you desire might cost. It also depends on how long your pension pot will need to last.

A good rule of thumb when it comes to retirement income is that ideally, you should aim to have saved enough from your combined pensions to give you an income equal to two thirds of your pre-retirement pay.

This is only a guidance amount though and your adviser will be able to give you a good indication of the annual retirement income you could potentially receive depending on your personal circumstances.

Although you may not have some of the expenses you have today such as mortgage, commuting and childcare payments, you may have additional healthcare costs and other discretionary expenditure tends to go up as you enjoy more leisure time and, perhaps new hobbies.