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.

Other News

Is another Banking crisis just waiting to happen?

CurrenciesIt’s 10 years on from the Northern Rock collapse. But have we all become complacent enough again to believe that the banks are now too big to fail. Well wake up and look at the facts.

Britain’s finance sector is an “accident waiting to happen”, according to a report branding the Bank of England’s stress tests as “worse than useless” on the 10th anniversary of the Northern Rock collapse.

Read More

10 years on from the collapse of Lehman Brothers

Financial ChartsLehman Brothers filed for bankruptcy on 15 September 2008. With $639 billion in assets and $619 billion in debt. Their bankruptcy filing was the largest in history and prompted an immediate fall in the FTSE 100 of 4%. It was the beginning of a slump that by Christmas of 2008 had resulted in 23% being wiped off the value of Britain’s top 100 companies. As a stock market crash, it ranks alongside the dotcom bubble and the shock of 1987. However, while living standards have flat-lined since that date, the stock market revival has been spectacular. Many investors were, however, spooked by the financial crisis of 2008 and liquidated their investment portfolios. Unfortunately as shown below – they lost out on the bull run of the next 10 years.

Read More

Select your country

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

You are currently viewing the Blacktower Financial Management EU website.

You may be looking for the Blacktower United States website.

Blacktower United States > X Stay on this site

Or choose your country.