5.1 Managing savings and investments
This video was produced by the government’s savings agency National Savings & Investments (NS&I [Tip: hold Ctrl and click a link to open it in a new tab. (Hide tip)] ). It starts your analysis of savings by looking at their linkage to financial planning, and it resonates with the course’s key theme of ensuring that in all financial matters a rigorous planning process should be applied.
Download this video clip.Video player: ou_futurelearn_money_vid_1013.mp4
As people get older their priorities change and this could be when they start work, when they get married and have children, when they retire or in later life. When people are younger they can afford to take far more risk because if they lose money they can afford to get it back again. As they get older capital protection becomes more important and it's essential that they hang onto what they have made.
People should start long term savings as soon as they can. When people are younger they've often got other priorities and they may not have much money to spare but anything they can do at that stage is useful. They should then look to invest more as they get older. If you are a late starter it is always better to do something than nothing at all. There have been changes to the state pension as well which means whatever money people save, they will actually get the benefit from.
You should be reviewing your plan on an ongoing basis. Your priorities will change as your life changes so you need to adapt to that. If you are in any doubt you should look to take independent financial advice.
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