How a financial advisor can help you beat inflation
If your money is sitting in your current account, this means that every day it is losing value because of inflation. A financial advisor can help you tackle this.
The latest figures from the Bank of England revealed that inflation was at 3.1% in December 2017. This means that if your money is left in a current account, or a low interest savings account, it is worth less each day. The way to overcome this situation is to invest your money in schemes that will provide a return on your investment that is above the inflation rate. A financial advisor can help you create a strategy to do this.
It has been estimated that Britons have £60bn in long-term low interest cash savings that are declining in real value by £1.5bn a year.
Working in Wirral
The UK’s official labour market statistics reveal that 40% of Wirral workers are above average earners. These are usually managers, directors, senior officials, professionals, and technical workers that are likely to have a reasonable amount that they can save or invest each month. There are also many prosperous self-employed people in the Wirral working freelance or owning their own small business.
Each month, a salary is paid into the bank, and for many people that is where it stays, waiting to be spent. If inflation continues at 3% or more, it means that every month, your money buys fewer goods.
How a financial advisor can benefit you
A financial advisor will discuss all the options that can increase your saving above the rate of inflation. There are many ways of doing this.
For example, broad tracker funds are linked to the stock market. You can choose funds that track the British stock market or overseas ones.
An ISA is a way of earning tax free interest on investments. ISAs can be invested in monetary funds for safe, but low returns, or can be put into shares or funds.
There are various funds that invest in a range of companies. Not all funds cerate high returns, so careful advice is needed to find the best performing ones.
There are risks involved in investing, as investments can go down as well as up. A financial advisor will show you how you can spread your risk so that, if one investment does not perform well, your overall wealth can still grow,
Tax is another issue where you may be wasting money. If you are employed, then probably your employer is deducting the correct amount of tax, but for the self-employed, there are various expenses that can offset against tax. A financial advisor can give you tax planning advice to make sure that you are not paying more than you need to.
Start today
You do not have to be wealthy to benefit from a financial advisor. Wirral residents can talk to an Endeavour Financial Planning financial advisor for expert professional advice.
The sooner you start your financial investment plan, the sooner you will begin to beat inflation.
INVESTMENTS – THE VALUE OF UNITS CAN FALL AS WELL AS RISE, AND YOU MAY NOT GET BACK ALL YOUR ORIGINAL INVESTMENT
TAX PLANNING ADVICE IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY
