It is always important to manage expectations when investing.
We often get questions about whether there is an explicit time someone must invest for how accessible the money is.
How long do I have to invest for?
If you are investing in an investment account or an ISA, then technically you could invest the money today and ask for it back anytime. This could be tomorrow, next week or next month. If you are over 55 it is the same with a pension. If you are younger than 55, you will have to wait until your 55th birthday (rising to 57 later this decade) to get money out of a pension.
How accessible is the money?
We put together portfolios which factor in who accessible the money is.
These portfolios do not use investments like structured products which have limited accessibility. They also do not use Direct property funds which have recently suspended withdrawals. In future, these funds may force investors to have to ask for their money six months in advance.
Our aim is to have portfolios which are as accessible as possible.
Can you guarantee I will get back what I invest?
While we focus on making sure our client’s investments are accessible if needed there can be no guarantee you will get back what you put in. We are clear that the value of investments may go down as well as up.
Where it is right for them, we encourage our clients to take short term risks with their money in pursuit of long-term rewards. An upshot of this is we advise our clients that to give themselves the best chance of getting these rewards they should look to invest for a certain period. This can be three years for a lower risk portfolio to nearly twenty for one of the highest risk portfolios.
This does not mean the money is not accessible. This is just how long we would advise you to invest to give yourself the best chance of getting a suitable return for the risks you are taking.