We know the maths almost by heart: the return on a savings account after tax and inflation is now negative. And that doesn't just mean that it takes longer to save up for later, college, a second home or a boat. It even means that some goals become unattainable, because your savings pot melts away like snow in the sun. While inflation makes the price of your goal higher.
So you run another risk: the risk of not achieving the target. For a boat, that may be unfortunate but not dramatic. For your pension, however, it can be very bad, especially if you run out of money to live your life the way you want to or if you are forced to work longer.
We can talk about it long or short, but there is a solution and that is not saving, but investing. Whether you like it or not, if you want to have more than you put in, you will have to invest.
Fortunately, that doesn't mean you have to put money into your nephew's start-up, into Bitcoins or even that you need to know about investing.
You can get moderate and stable returns from bond portfolios put together by a professional manager that give a net return of about 4%. That's 4% more than nothing. If you want to know how we do it, and more importantly, what it means for your future dreams, please contact us.
