Do you have money on deposit? Are you just leaving it there? Have you considered starting a regular
savings plan or putting a lump sum you have accumulated in an investment? If not, then now is a
good time to consider your options.
Is your money working for you now?
You may have a healthy bank balance but there is always a downside. In this case, it is that although
there is more money sitting on deposit, it is becoming less valuable. We are in a 0% interest rate
situation. That accumulated sum you have on deposit isn’t “just sitting in the bank”. It’s certainly not
earning you any return. In fact, it’s actively losing value due to inflation. It’s all very well having a
small amount of money readily available for “a rainy day”. But to make the most of your money you
need to look at the options to make it work harder.
So, what are the options?
There are currently a wide variety of very attractive regular savings plans and investment bond
options available. In comparison to deposit accounts these offer two main advantages:
• Investment Growth
You need your money working as hard as possible for you. This is possible to achieve through a
medium to long term equity-style investment plan. Although investment markets felt an initial sharp
drop in March/April 2020, they levelled out over the summer and to year end. The US election result
and vaccine roll-out among other political and economic factors are reflected in an uplift in fund
values.
• Investment Options
Although you need your money to achieve strong returns, you should only take on a level of risk that
you are comfortable with. There is a wide range of fund options including readymade portfolio and ESG fund options available. These help to ensure there is a suitable choice regardless of your risk
profile and how long you wish to save or invest for.
Next steps
The next step to take is to talk to a financial adviser – you can contact us here at Lifespan Financial
Services. We will help you decide what your saving/investment goal is. How much money you can
put away and for how long. And we will work with you on how to assess what your appetite to risk
is. Most importantly we will outline the product options and choices that are best placed to deliver
on your goals.
