Where can the average person invest their money and what most financial advisers don’t tell you?

Where can the average person invest their money and what most financial advisers don’t tell you?

Where can the average person invest their money and what most financial advisers don’t tell you?


I was a financial adviser for 25 years working for banks, insurance companies and in my own IFA practice. I am also the author of the book, Yes, Money Can Buy You Happiness.


For the average person who has a small lump sum or monthly amount of cash to invest there are a number of investment vehicles from which to choose. Here is a basic list of products available to the average investor.


Deposit based investments


ISAs and bank deposit accounts which are usually guaranteed up to £85,000 by the government.




  • Safe, guaranteed investment up to £85,000.




  • Low returns.
  • The purchasing power of your money will be eroded by inflation.


Asset-backed investments


Shares, bonds and property. You can invest in these assets directly or through investment vehicles or funds such as, unit trusts, mutual funds, pension schemes and ISAs.




  • Potential for better returns over the longer term.




  • Higher risk.
  • You could get back less than you’ve put in.
  • More specialised.


If you have less than £250,000 to invest, most financial advisers will only be able to recommend products via funds which invest in the above asset-backed regulated investments, which are regulated by the FCA (Financial Conduct Authority) rules. You are protected by the FCA, for instance, if you are miss-sold one of these products by an authorised adviser.


You can check the FCA register for a list of authorised firms and advisers. Advisers must study and pass exams and prove they are keeping up-to-date by attending training courses and CPD.  If you want to know what they know, take a basic financial adviser course.


Financial advisers can usually only recommend regulated products. This is usually outlined in a long brochure or leaflet, who nobody reads in my experience, or is blurted out in a long sentence over the phone. Financial advisers will not advise you to buy a property or invest in an individual share, as they will say that it’s too risky.


Some financial advisers are independent and can recommend a range of products with a number of product providers or companies.


However, other advisers work for an insurance company and can only recommend the products or services.


Investors with large amounts of money can access specialist financial planners and a wider range of investment vehicles.


There are of course more specialised direct investments, such as, art, vintage cars, antiques, fine wines, stamps, as well as metals like gold and silver.


Lots of people collect art, wine and gold and silver coins, either as a hobby or as a hedge against inflation.




  • Potential for higher returns if you know what you’re doing.
  • Usually, but not in all cases, capital gains tax free.




  • Higher risk.
  • Requires specialist knowledge and expertise.
  • These types of investments do not generally produce an income.




In recent years, there has been an explosion in buy to let property investors and small property developers. There are now around 2 million buy-to-let landlords in the UK.


Direct investment into property, or “bricks and mortar” as my parents would say, has proved extremely popular with investors who have shunned more traditional investments like pensions and shares.




  • Potential for higher returns over the medium to long term.
  • Property rentals also produce a return or yield in addition to capital growth.
  • You can obtain a mortgage to purchase a property.
  • Tax advantages, depending on what investment vehicle you use to purchase property.




  • Property requires more work and is seldom a totally passive investment.
  • Property takes time to sell and can be difficult in a downturn.
  • Higher risk, especially for the amateur landlord or small investors who buy a property at an auction after watching “Homes Under The Hammer” on TV.


Property investment should be treated as a business rather than a hobby.


When done professionally, property investing can be extremely rewarding and enjoyable.


Other investments


I often get asked by people who say, what about investing in bitcoin, FOREX, or traded options.


They have usually read about it I’ve been offered a course on how to make money as a day trader in for an exchange. My answer is, if you don’t understand something, don’t invest your money into it.


There is also a difference between investing and speculating. Speculating that a certain share or currency may rise based on a new story or trend it’s not the same as investing in a share in the company that you have researched and believe will do well in the long term.


Similarly, jumping on the property bandwagon because the market is rising or you want to secure a new apartment off-plan in the latest high-rise development it’s not the same as learning your craft, doing your research and investing in a property you feel will give you a good return on your investment (ROI).


If you would like to learn more about investing in property, please drop me a line.


The above information is for your information and entertainment only and should not be considered to be investment advice, as I’m not your financial adviser.


By Charles Kelly, Property Investor, Author of Yes, Money Can Buy You Happiness and creator of Money Tips Podcast.


There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.


If you’d like further information on how to survive the crisis and even quit the rat race, email me at Charles@CharlesKelly.net or send me a message through Facebook or my Money Tips Daily community. See more articles at www.moneytipsdaily.com


True entrepreneurs create wealth and jobs and don’t need you to be poor for them to be rich.

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