Five Reasons Why Investing Can be a Smart Strategy

19 Jul, 2019

19 July 2019 Deciding whether to save or invest your money can be difficult.

Saving may be safer, but with interest rates at rock bottom it’s not going to earn you much in the way of a decent return on your capital.

The impact of inflation could all but wipe out any interest returns hence
why people consider Investing as a potentially more lucrative long-term option.

While investing comes with an element of risk, the possible rewards can
make it an attractive option for some consumers.

Here, are five reasons why savings shouldn’t be left to stagnate in poor
paying cash savings accounts.

1. Passive investments can generate better

While it can be tempting to keep you cash savings in the bank or building
society, passive investments can actually prove to be much more

Yes, you’ll receive a certain percentage of interest on your savings, but that still doesn’t match the income you could generate from a passive investment.

These types of investments have been popular for many years, with $60 billion poured into them in 2013 alone. It’s well documented that investors often benefit from above average returns from low-risk passive investments, when compared to traditional cash savings.

2. Providing greater returns over time

Any type of investment has the potential generate healthy financial returns over time. That is of course, providing you make the right investment choices that meet your objectives and risk profile.

Using the services of a professional regulated asset management company, can help you assess the risks and ensure you are investing in the most suitable funds to meet your needs.

Compared to simple cash accounts, the amount you could earn back over time with the right professional guidance is significant.

3. Helping you to build up a good
retirement fund

Many people focus on saving money towards their retirement. While this is
a great option for those in their early twenties, for those who have started to
save later in life, the returns on their savings might not be enough to live
off once they retire.

With investments on the other hand, with professional financial advice you’ll should be able to build a healthier retirement pot to help you live out your later life without niggling money worries to contend with.

4. Providing you with a regular income

Cash flow is frequently one of the leading challenges for people today.
The cost of living in the UK remains high, and for some it can be difficult
making it through the month.

With the right investments, it can provide you with an additional regular income.

5. Your investments can be tailored over

There are so many different sectors, countries and specific markets you
can invest in.

The choice and variation will enable any advisor worth his salt to tailor your investment portfolio to match your changing needs.

In summary, leaving your bank balances in cash may seem like the easy and
safe strategy, however with a little professional guidance a portfolio of
investments can help deliver far better returns over the medium to long term.