Can you afford not to invest?
Life, it’s fair to say, can be expensive. And, while savings pots and pension
contributions are important when planning for different life stages, exploring the
option of investing could help future-proof your finances and make your money
work harder for you.
Why should I invest?
Investing – especially for the first time – can seem daunting and confusing. Many also believe that investing is for a later time in life, when savings have grown and mortgages are on their way to being paid off. But, with wage growth in the UK remaining sluggish and disappointing interest rates on
savings accounts, building up a diverse investment portfolio could offer much healthier returns and enable you to achieve your savings goals much faster.
The impact of inflation means many people have been forced to dip into their savings to help make ends meet. This is obviously reducing the amount they had hoped to have saved for the future. This monthly shortfall makes it difficult to plan ahead for your future financial goals no matter what stage in life you’re at.
It’s important to remember that investments are not risk-free and you could get back less money than you originally invested. However, the potential gains can be much greater than leaving your money in a low-interest savings account.
When investing, it’s important to look at your longer-term financial goals. Investments, such as shares in particular companies, can be volatile over shorter time frames and checking the status of your investment on a daily basis is therefore counterproductive.
Finally, before you invest your money, it’s wise to check the fees that are applicable. There may be annual management fees, set-up fees or withdrawal charges to pay when you decide to access your money. There’s lots of investment advice in the market, but it tends to be very general in nature, you need bespoke investment advice before jumping in, so speak with our wealth managers.
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