Every company needs access to cash to assist with the running of the business. However what do you do with the profit that you do not want to withdraw from the company for personal use, shareholder return or pension contributions?
While this ‘rainy day’ money may well represent a source of comfort, the chances are it won’t be working for you and, if held for a prolonged period, could erode due to the effects of inflation.
By initiating a corporate investment strategy you could put this money to work for the company rather than leave it in a low yielding environment that carries little prospect of real capital growth.
The value of a pension will be directly related to performance of the funds selected, and will fall as well as rise. You may get back less than the amount invested.
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax reliefs depends on individual circumstances.
An investment with equities does not provide the security of capital associated with a deposit account with a bank or building society.