We’ve all saved for specific purposes: To buy cars, houses, holidays, weddings, education, to repay mortgages, to be able to retire, to live on, to pass on to others, or just to feel financially secure and have something put by for a rainy day. When long term growth is needed knowing that the value of your money will not be eroded by inflation is key to proper planning. Sadly in recent times traditional deposit accounts don’t even match inflation, let alone outpace it and property is not as attractive as it once was and of course has its own set of risks, so what to do?
A general rule of thumb in financial services is that using equity based investment for the longer term (5 years plus) should exceed inflation and deposits (though of course nothing is guaranteed). Owing to events since 2008 there is increasing mistrust in banks and financial institutions, doubt cast on the credit worthiness of governments and seemingly a never ending stream of bad news in the financial markets, however with the right guidance meaningful growth can still be achieved.
We work closely with our clients to understand their goals, their concerns and their appetite for risk and reward and choose the most suitable assets and strategies to achieve those goals. Once this has been set up, regular reviews help to keep things heading in the right direction.