In these uncertain times, many savers and investors are holding large sums as cash within their bank accounts and investments. Yet they are invariably getting no interest on these deposits. So action is required if they want the potential to at least meet inflation, currently standing at over 2.5%.
The expectation is that performance of the financial markets in 2018 should be a reasonable guide to what lies ahead in 2019, with greater volatility playing a major role. The feeling is that Equities will lead the way in 2019, albeit via a bumpy road.
Investors should expect lower and more variable returns than those seen in 2017 and the sentiment is that buy and hold is the best strategy. But to weather the storms ahead investors need to hold a well-diversified portfolio that is actively managed. Management of volatility is key so Multi-asset funds should be of interest to investors.
The wealth management plans of many expats in France have received a welcome boost with an announcement by the French government that there will be a reduction in the rate of social charges on investment income, meaning that low income expats will now be subject to a 7.5% charge compared to the previous 17.2% rate. However, the basic rates will remain as they were in 2018.
The news, which was announced as part of the social security budget for 2019, is of particular interest to expats in retirement as well as those who draw investment income. It also benefits those who do not live in France but receive income from investments in the country.
Your cash is earning nothing in the bank, in fact it’s actually losing its worth in all probability because of the corrosive effect of inflation. Even ostriches have to raise their heads at some point, if only to breathe.
Quite frankly it’s time for people to start taking control of their money instead of letting the banks bleed them. In the days we are in now with increased life expectancy, a longer wait for retirement and the pension freedoms that there are around, there could not be a better time for savers to act and improve their lot. So you go to see a financial adviser, what is he going to say?