Top tips when investing

1.  Work out your attitude to risk

2.  Pay off or pay down all borrowings other than your mortgage first.  Interest rate charges on loans, are generally much higher than on a mortgage.

3.  Diversification is the key.  There are four asset classes you should be thinking of: cash, bonds, equities and commercial property.

4.  Make sure you always have enough money on deposit to meet your short-term needs.

5.  Make full use of your annual ISA allowance, as you can enjoy tax-efficient returns on your investments.

6.  Think about your pension.  It is one of the most tax-efficient ways to save, and new pension freedoms mean that over-55’s can access up to 25 per cent of their pension pots tax free.

7.  Find the best possible fund managers for your investments.