Contact

News & Insights

Inflation – The Asset Eroding Thorn in your Low-risk Investment Strategy

Growth is key for an inflation busting investment strategy

A portfolio that overly emphasises fixed interest securities, annuities or cash savings may struggle to keep pace with inflation and could ultimately result in you needing to make unwanted adjustments to your lifestyle or, worse, could even cause you to run out of money.

With this in mind, it is unlikely that a conservative or “low-risk” expat wealth management strategy is going to provide sufficient income as you get older.

Before August this year interest rates in the UK had remained at or below 0.5% for nearly a decade. When you consider that the inflation rate in the Euro Area averaged 1.97% from 1991 until 2018, it is easy to understand how, even with the recent interest rate rise to 0.75%, relying on UK-based savings could leave you short of enjoying the expat retirement lifestyle you have always dreamed of.

The bottom line is, that while your savings are growing at one rate, the cost of living is rising at another – and if the two don’t match, or your growth rate is lower than the inflation rate, as time goes on, your savings will buy you less and less.

There is only one answer to this and other expat wealth management retirement planning problems: plan ahead and work to diversify your assets so that you can find the balance between growth and safety that is suitable for you and your goals.

Advice from Blacktower Financial Management

At Blacktower Financial Management our experts can help you develop a confident expat wealth management and retirement plan to give you the best chance of having sufficient assets to see out your retirement and any legacy plans you might have.

We are a specialist firm, with many years of experience and our team of international financial advisers understand all the important cross-jurisdictional issues affecting expats. We can help you protect and grow your wealth and provide you with the information and support to make investing choices that are right for you.

Contact us today for more information.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

Here today, gone tomorrow?

While the markets are going up and down madly, are you being looked after by your financial adviser? The economy has dominated the headlines since the turn of the year, and many people are concerned about their hard-earned savings and investments. Very often, the best approach is to either wait out for markets to calm down, or take advantage while they are lower.

Although there is a risk in wanting to take action every time big market moves are on the news, it’s still worth asking a few questions regularly: does the reasoning behind your investment strategy still hold true? If so, should you be taking advantage of lower valuations by committing more resources to your long-term finances? If it doesn’t hold true anymore, is it the right time to move out of certain investments and take a different approach with your money?

Read More

Blacktower’s Nexus Funds Show Rapid Acceleration

London – October 2019: Leading wealth management provider, Blacktower Financial Management Group announces milestone growth of over 12% and 18% YTD, of its Nexus Solutions and Dynamic Funds, respectively.

With Nexus Solutions Portfolio currently standing at an outstanding valuation of £105m and Nexus Dynamic Portfolio at a similarly impressive £29.56m, both funds were launched by Blacktower as means to provide its clients with access to award-winning investment DFM solutions.

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information: