Are You Protecting Your Cash From Inflation?

As you will no doubt be aware, inflation is currently at its highest rate for 30 years.

This news is extremely unwelcome as inflation has the potential to significantly devalue your cash in real terms over time. Effectively, your purchasing power is ravaged as you live through retirement.  

Perhaps you have spent your whole working life saving up a nest egg for you and your loved ones.  You may have only recently come into ‘cash’ after inheriting money, downsizing or selling a house or business.   

The issue is that even if interest rates rise this year, the rates offered for saving accounts are likely to be significantly below the rate of inflation.

Therefore reviewing your assets this year will be key to protecting your wealth from inflation. At times of high inflation and low interest rates, it simply isn’t ideal to hold on to too much cash.

Investments have always provided better growth potential than savings in the long-term. In addition, utilising key tax shelters such as ISAs and pensions is a simple and effective way to further protect investment returns – and mitigate the impact of inflation.

Remember, you don’t have to wait until the end of the tax year to make a contribution to your ISA and you can also review and potentially switch, existing under-performing cash ISAs at any time.

We are happy to offer a complimentary investment review so you can be sure you are doing everything you can to protect your cash assets, whether from inflation or any other external factors.

To book your financial planning review with one of our adviser, call 0117 3636 212 or email office@haroldstephens.co.uk.