Pass it on – how to help someone you know get started with investing

Whether it’s your best friend, next-door neighbour, your favourite uncle or a new-born baby, we all know someone who could benefit from investing.

Not everyone will be ready to invest today. But it’s important to spread the message that with the right circumstances, anyone can be an investor.

This article isn’t advice. If you’re not sure what’s right for you or someone you know, ask for financial advice.

First things first

Investing can help people make more of their money and grow their wealth over time.

In fact, for 91% of 10-year periods, investments in shares have done better than holding cash. Before getting started though, there are a few things that everyone should be clear on.

• Only think about investing if you’ve already built up cash savings for emergencies.
• Be clear on the differences between saving and investing. Saving tends to be for the short term, while investing is for the longer term.
• Investing can present opportunities over the long term but remember, you could get back less than you invest. All investments involve risk, as they go up and down in value.

Once they’re clear on the above, here are some pointers that could be helpful to pass on to people you know.

It might be easier than they think

If the person you have in mind is happy to do some research, there’s plenty of information available for beginners. You could share:

• Our videos on the basics of investing and how to get started.
• Information on the golden rules of investing, such as diversification.

Or if you think back to when you started investing, were there certain things you wish you’d known? Your own experiences might be useful to the people you know.

There are different accounts to choose from

Your friends and family might find it useful to know that there are different investment accounts to choose from. For example:

• Your niece who’s saving for a first home might like to know they could get a 25% government bonus with a Lifetime ISA (LISA).
• Your self-employed friend who’s been trying to decide whether to start a pension might like to learn more about tax relief.
• Your brother with young children could be interested in Junior ISAs.
• Friends and family who are looking to save tax might like to learn more about our most popular account. Anyone opening their first HL Stocks and Shares ISA before 28 September could even qualify for a cash bonus. Terms apply.

You’ll need to make anyone you’re helping aware that there are also restrictions and rules around certain products, which they can find on our website.

For example, to benefit from the LISA bonus, you need to be aged between 18 and 39 to open the account and it needs to be open for at least 12 months. Then can use the money towards a first home. If the money’s used before then or it’s needed for something that isn’t a first home and you’re younger than 60, you may have to pay a 25% government withdrawal charge.

Tax rules can change, and their benefits depend on individual circumstances.

See our full range of accounts

Investments can be personal and affordable

There isn’t a one-size-fits-all when it comes to investing.

If the person you’re looking to help hasn’t invested before, they might not be aware of the different options. You could let them know it’s possible to choose from a host of options. For example ready-made options, or pick shares in the companies they love. If ethics are important to them, they could research responsible investments. For low-cost diversification, index funds could be an option.

If they’re happy making their own decisions, they should be able to find something that’s personal to them, without needing huge sums set aside. It’s possible to get started from £100 as a lump sum, or from £25 a month with HL.

See our latest investment ideas for a Direct Debit

Expert help is at hand

Not everyone will feel comfortable managing their own money.

If you know friends or family who might benefit from financial advice, you could pass on the details of our expert team. They can help with everything from investment advice to inheritance tax and retirement planning.

Learn more about financial advice

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