You work hard, you save and invest, so nobody wants to see their money disappear. The big question is how do you achieve that during uncertain times?
Protecting your savings should be high on everyone’s list of priorities. However, it’s easy to take your eye off the financial ball.
Now, with so many changes to global markets and how companies can operate, it’s a great time to take stock of your position.
What was right for you one, two, five or even ten years ago could have changed considerably.
Revisit your long-term goals
Many things can change. How you, your work and your family have been impacted during the coronavirus pandemic has made many people take stock of their lives.
Savings are at the heart of this.
The uncertainty during 2020 hasn’t been limited to a couple of months. It’s been an ongoing roller-coaster for many savers and investors.
When you revisit your investment objectives and assess your long-term financial goals you can see if your overall portfolio is sufficiently diverse.
Your attitude to risk might have changed. Now is a great opportunity to sit down with an independent financial advisor to create a diverse portfolio that matches your risk appetite.
Consider spreading your savings
Aside from investments and pension funds, many people continue to save in traditional bank and building society accounts. This is despite most interest rates being historically low.
Like all funds, returns on savings and conditions vary in such institutions. There may be better rates to be had, special offers and more freedom associated with certain accounts when it comes to accessing your money.
Picking the right accounts can help you manage your overall savings in a more efficient and profitable manner. While rates are low, getting the most for your money now could affect your longer term goals.
Also, don’t forget the limits!
These days, in the unlikely situation that your bank or building society gets into financial difficulties most customers will be covered by the Financial Services Compensation Scheme (FSCS).
However, this safety net doesn’t pay back unlimited amounts. Make sure you never get caught out.
If you have amassed a large savings pot, consider moving some to other accounts under separate banking licences. This will maximise your protection, as only the first £85,000 is protected on each account (£170,000 for joint accounts).
Take independent financial advice
Understanding your circumstances and goals is central to how Logic Wealth Planning operates. We are independent and help clients look at a range of options to suit them.
As well as looking after your financial interests, we work hard to look after you. We move at a pace that suits your lifestyle so that you feel comfortable making key life and investment decisions.
Please call us on 0808 1234 321 or email info@logic-wp.com to start the discussion about how best to start enjoying income during retirement.
Please be aware the value of investments or income from them can fall as well as rise. We are here to help you make informed decisions as you put important things in place for you and your family.
* Logic Wealth Planning provides independent financial advice in Manchester, Bury, Rochdale, Cheshire, and the surrounding area, but not limited to the region.