There are a number of fundamental questions which must be answered before a decision to invest in non deposit based investments is taken. This decision tree is intended to help you understand what these questions are and whether equity based investments could be appropriate for you.

Straightforward bank/building society deposit accounts are the ideal place for your savings and emergency money as they are convenient, easily accessible and safe. However, putting all of your money in deposit accounts is not always a good idea as the returns may not keep pace with inflation and so, over time, will erode the value of your money.

It is an accepted fact that the growth in shares (and the dividends they produce) has historically exceeded the returns from fixed interest investments and cash deposits, even taking into account the ups and downs of the stock market. Therefore, many people decide to invest some of their money in order to benefit from the potential of increased returns offered by stock market linked alternatives.

This series of questions will help you decide whether it is time to start investing as well as outline any other financial areas which need your attention. BEGIN »