‘What puts off most people from looking after their own finances is fear’. This powerful statement from Andy Bell’s book The DIY Investor underlines the hurdle that an increasing number of people in the UK will have to clear if they want to have a financially-secure retirement.

Developing a regular savings habit is vital if you want to build up a pot of money that will support you in later life. Equally as important is what to do with your money and how to let it grow in value.

The latter part is perhaps the hardest challenge for many individuals. Most of us will know that banks and building societies are paying abysmal rates on cash deposit accounts, which inevitably prompts the question: where can I get a better rate of return?

Investing in the markets is the logical choice for many people and with that comes various challenges. You need to understand the process of investing, the range of products and the rules around tax benefits and charges.

Fortunately, The DIY Investor contains a wealth of information which should put you on the right path to making money from investing. An updated version has now been published and includes a wealth of additional material aimed at helping people get the most from investing.

In particular, it explains how to build an investment portfolio and discusses various investment strategies such as what to do if you need to live off the income from your investments.

Not a get rich quick book

Bell is chief executive of investment platform provider AJ Bell – also the owner of Shares magazine. It’s important to stress that he hasn’t written a get rich quick book. Neither does he provide a list of funds and stocks for you to buy. Instead, Bell talks about how to get started in investing and plan for a financially secure future.

By grasping the basics, you should find it easier to research products suitable to help achieve your investment goals, taking into account appetite for risk and time horizon.

The content is relevant to a wide range of individuals. For example, that might include someone at the start of their career who wants to develop a good savings habit, as well as appealing to someone who has depended on third parties to manage their money but now wants to go it alone.

Talking in plain English

The book explains how to choose and use the different types of ISAs. It explains how to run your own pension through a SIPP (self-invested personal pension). It even runs through the range of tax benefits and charges, including all the topics and allowances relevant to the 2017/2018 tax year.

‘For the DIY investor, minimising tax is about the smart use of reliefs and allowances that the government has designed to incentivise us to save for our futures,’ writes Bell.

In our view, The DIY Investor is an essential companion for anyone who is serious about generating long-term wealth.

FANCY A FREE COPY OF THE BOOK?

We've got five copies up for grabs. To enter the prize draw, email yourviews@sharesmagazine.co.uk with the words 'DIY Investor book competition' in the subject line. Please include your full name and postal address. The competition closes on 22 August 2017

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