Poor Interest Yield could be Costing you Thousands
According to new research by Henderson Global Investors, you could be ‘throwing away cash’ through investments that yield low returns. This could be a particular problem in Middle East regions such as Dubai where disposable incomes tend to be higher.
Since the recession, many potential investors have opted to keep their money tucked away in low interest yield bank accounts. Although having emergency cash is prudent, Henderson Global Investors believes that households are wasting £466billion through lack of investment.
James de Sausmarez, head of investment trusts said: ‘The banks and building societies are benefiting from very cheap financing, but the savers are simply throwing vast sums of money away every year by not considering better investment alternatives.’
Solid Financial Advice
According to the Office of National Statistics, the average household has around £54,000 invested in low interest rate financial products such as ISAs. If half was wisely invested, the returns could be far greater. It would also leave you with a sizeable amount of rainy day money.
The question is where do you invest? This is where a good financial adviser with sound knowledge of tax, pensions, QPROPS, and wealth management are worth their weight in gold.
Mr Sausmarez continues: ‘On almost half the cash saved, people don’t even know the interest rate being paid.
‘People obviously fear losing capital, yet history demonstrates that a long-term approach to investment mitigates those risks, and provides the possibility for capital growth.
‘Keeping half our collective wealth in cash provides a far bigger financial buffer than we need. Yields on equities in the UK are almost four times higher than the typical savings interest rate. They are a bit lower overseas, but still far outstrip cash.’
Mitigating Investment Risks
Sifting through the various financial products available is a time consuming and difficult task. Do you invest in specific shares or spread the risk over several markets? How much should you invest in a pension? What about insurances such as health or critical illness? And how much do you really know about tax?
This is where my award winning knowledge can help you set out on the right path. If you’re interested in higher returns but want more risk, I can help select the right investments for you. If you’re more interested in security, I can give you the full picture on a more cautious investment choice.
I can give you a complete overview on tax, and I can help you find the best pension products to make your retirement stretch that little bit further.
Solid financial advice can turn your £20,000 savings, into something considerable.
To begin click here and complete the Call Back Service form. It is time you turned your cash into something better.
Source: This is money