Is it time to inflation-proof your savings?
Is it time to inflation-proof your savings? Rising inflation is prompting many of us to think carefully before spending, but it should also be a trigger to make us consider the impact on our savings and investments.
The greatest risk to capital
In times of rising inflation and low interest rates, sticking to cash is a major risk, as the real value of your money will be eroded over time.
Even if you are happy to tie up your money for five years, you’re unlikely to match the current inflation rate so you need to think about how to inflation-proof your savings.
Diversification is key
It’s prudent to keep any emergency funds in cash at the bank, but then to consider inflation-beating assets such as the stock market
for longer-term investments. Investment products have historically delivered better returns over the long term, so it’s advisable to consider the options.
Don’t forget the taxman
Taking advantage of tax-efficient investments such as ISAs or pensions is a simple way to protect investment returns and mitigate the effects of inflation.
We are able to offer you investment advice & wealth management solutions, including ethical investment options, at every stage of your wealth cycle – as your family, life and financial situations evolve. We will always seek to recommend the products which are most suitable for your needs and can adapt to changes in the future – whether they are planned or not. Unplanned changes in these unstable times are to be expected - we're here to help you deal with them.
You may wish to entrust the entire investment advice & wealth management process to us, or, if you wish to make the investment decisions yourself, use our services and expertise to help you in your choices. It's up to you. In uncertain times, it helps to have someone else watching over things.