Whilst falling interest rates are welcomed by borrowers with mortgages, a significant number of people have not insubstantial savings. Their savings are often deposited at the bank or building society and, as a consequence, they are seeing their returns dwindle. In many cases, retired people are reliant on the interest of their savings to supplement their pension income. The prospect of lower and lower interest rates in forthcoming years is not at all welcome.
Many investors would like to produce a better return on their savings, whether or not they are relying on the savings for income. They are reluctant however to take any "risk" with their capital and therefore they are often resigned to lower returns for the foreseeable future.
It is important to understand the real meaning of "risk". For example, money that is held in a deposit account seems safe, but it is not really secure if it is declining in value, as a result of inflation. For long-term safety it is important to invest capital where it has the best prospects for generating a growing income and capital growth. Unlike bank and building society accounts, if a policy is surrendered during the early years, you could get back less money than you have paid in.
Our independent advisers can help you construct a portfolio of investments, including some deposits for emergency needs, as well as more long-term investments with the prospects of superior capital growth or a growing income, as your circumstance require.
Acorn Financial Planners Limited. Registered in England No:3839659. Registered Office: 1-3 The Mall, Ambrose Lloyd Centre, Mold, Flintshire, CH7 1NR.
Authorised and Regulated by the Financial Services Authority.
