‘Take the plunge’ to secure higher returns – ‘watch your money grow!’ Britons are being urged to ‘take the plunge’ in order to secure higher returns.

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‘Take the plunge’ to secure higher returns – ‘watch your money grow!’ Britons are being urged to ‘take the plunge’ in order to secure higher returns.

SAVERS are constantly warned about rising inflation and the negative consequences it will have on their savings.

An expert has emphasized the importance of investing in order to combat the inevitable loss of value that any savings account will experience.

Becky O’Connor, head of pensions and savings at Interactive Investor, spoke to Paul Lewis on BBC Moneybox about the benefits of investing and what people can do to get started, emphasizing the importance of “having some cash” on hand just in case of an emergency before looking to invest.

“First and foremost, consider what you can afford,” she advised.

“Before you invest, make a budget because it’s pointless to do so if it’ll put you in debt.”

“There’s still a reason to have an emergency fund set aside for anything you might need in the near future, so there’s a reason to keep some money in savings, even if it’s being eroded by inflation at the current interest rate level,” says the author.

Inflation rose to 5.1 percent in the year ending December 2021, the highest level in a decade, and with interest rates at a record low of 0.25 percent, the value of one’s money is eroding.

If you’re not sure where to start investing, Ms O’Connor recommends starting with stocks and shares ISAs.

“They’re tax-free up to £20,000 a year,” she went on to say.

“If you’ve never done it before and aren’t sure where to start, financial advisors or DIY platforms can help.”

“So, if you’re looking to invest on a regular basis, you’ll want to do your own research but start small.”

“Set up a direct debit so you don’t have to remember.”

“There are thousands of funds and trusts to choose from when investing for the first time, so looking at ready-made portfolios and quick start funds and things like that, as well as keeping charges low, is very important.”

She went on to say that investing in stocks and shares can be a good place to start because of the potential for higher returns.

People who invest in funds that track the FTSE 100 can expect returns of seven to eight percent on average, making it a viable way to beat inflation.

Capital, on the other hand, is at risk when it comes to investing.

With the rise of investing as a profession.

“Brinkwire News in Condensed Form.”

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