Investing for the Long Term - Hot Topics Q&A

Q. Aside from pensions, how else can I build up a pot of money over the long term?

A. It's important to remember that many of the well known financial product names are actually tax wrappers, not investments. So, personal pensions, ISAs, Bonds, AVCs and Self Invested Personal Pensions all offer different advantages and disadvantages in terms of tax treatment and when you can access your money.

Where many investors go wrong is that they choose the tax wrapper BEFORE the investment. In fact, many times the investment is merely an afterthought. So, what steps can you take to avoid this?

1. Assess your attitude to risk thoroughly
2. Decide how many years you want to invest for
3. Make the decision in line with your overall priorities
4. Choose funds that closely match your attitude to risk
5. Choose the tax wrapper
6. Review every year

If you've got a question you'd like to ask us just complete the form here and we'll get back to you with an answer (if we publish it we'll keep your name anonymous).