'How Sharon secured £100,000 to take early retirement?'

This essay will start by assessing Sharon current situation. Therefore, contribute to the route of the investment. That is relying on both text and supposed information. Furthermore, maintain Sharon's place on risk in relation to return. Not only but also relate to Sharon's tax position. In addition present evidence to back or question speculation.

From the text book Sharon is 40 years, single and has no known dependents. A home owner, debt free and the potential investor with £100,000. Therefore, imagine Sharon being in the high income bracket. With the possibility of having an occupational pension. In the first instance, Sharon priority is early retirement at 55 years. To simulate further Sharon is a somewhat nervous investor. For example, with Sharon's view to risk. We know from Rutterford (2006 p.191) regarding the UK Financial Services Compensation Scheme. Should a banking institution bust, this may cover all or part off an investment depending? Consequently, covering 100 per cent of the first £2,000 then 90 per cent of up to £33,000. The investor should know if their bank is registered. Moreover, another risk to savings is inflation. Unless interest rate is above inflation savings are devalued.

However, Sarah could invest into a fixed rate 'Index linked Savings,' account. The returns are between 1.05 to 1.10 per cent above the current inflation rate. However, should interest rate rise this investment would not be as lucrative.

The first priority for Sharon is quick access to about 5 per cent or £10,000 cash. This is for emergency purposes. The 'Internet Savings' account offers 4.75 AER. Sharon can bank on line, transfer money pay bills and have a good return. Internet banking pay's higher interest rate with fewer staff handling charges. Where as the high street bank pays 1.50 AER but