As interest rates are at an all time low at present, deposit returns are poor. Investment returns of course outstrip these returns but below are other considerations before you decide on a course of action with your money: Access: Tying your money up for longer periods goes hand in hand with higher rewards but the downside is that it may be out of your reach. If it is in reach, it might be subject to penalties at withdrawal. Risk Vs Reward: By investing money you assume some risk. Be aware of what this is. Time invested: With any investment compounding growth takes time. In general the longer you invest, the more return you will get as fluctuations in risk and reward will iron out over a longer period.It pains me to see people withdrawing from their investments after a short while. Apart from unforeseen circumstances (which should be covered by an emergency fund) it indicates incorrect decision making at the outset. Complexity: Don’t invest in something you don’t understand. Know how it works, the dangers, the rewards and characteristics. Nobody else will care as much about your money as you will, ever. Fees and charges: Don’t underestimate how different fees can eat into your investment. Get clear on how your money and gains are being reduced by charges. Slick salespeople: Beware promises of huge growth or gains or fancy-ass bells and whistles. If it seems too good to be true, it usually is. Past performance doesn’t guarantee future performance. Always get some impartial advice, ideally from someone who is not selling you their products. Don’t rush: Put it on deposit while you decide. Yes it is not the best place in the long term, but it is safe while you make the decision. Discuss it: Finally, have you discussed this with your spouse or partner or close family? Get their opinion.
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