After years of waiting for something to happen, cash investors are slowly starting to realize that their patience hasn’t materialized into any growth. Interest rates around the world have been low for years, meaning cash savings accounts aren’t translating to increased returns.
As a result, more and more people are turning to the stock market to generate the growth they have been seeking. The Telegraph recently ran a report on an English couple that made this very same switch.
Instead Mr Martin, 52, stuck to the fixed-rate savings bonds offered by banks and building societies, which offered safer, guaranteed rates of return. “But after several years I got frustrated because every year the rates would go down,” he said. “I would have to tie my money up for years at a time just to earn interest of 2pc, yet at the same time I kept reading that the stock market had risen by 7pc or 8pc.”
He bit the bullet and opened an investment account with Hargreaves Lansdown five years ago. He started slowly at first, putting some money into Hargreaves Lansdown’s own Multi-Manager Income & Growth fund, which is a type of one-stop shop option as it invests in a range of other funds such as Woodford Equity Income and Jupiter Asian Income.
Martin explains that he has translated his switch to the market in a full pension plan! Here is one of the tips he has for prospective investors.
“While funds with the potential to grow your money rapidly can seem attractive, they can often be volatile. Some investors prefer a steadier ride. Free risk-tolerance questionnaires can help you assess your attitude to risk so you can decide the best path for you (Standard Life Savings has one at tinyurl.com/lu42zrx).”
By assessing your risk, you can decide what is the best rout for your savings. To find out Martin’s other tips, go to telegraph.co.uk.
You may be interested
Job Hiring is Picking Up as Employers and Consumers Gain ConfidenceLamont J - March 29, 2021
The recent government stimulus for small and medium-sized businesses, personal stimulus checks, and declining Coronavirus cases, are all great news…
Fed Could Maintain 0% Interest Rate Until 2024Adam R - March 26, 2021
The Federal Reserve is holding its target interest rate in a range of 0.00% - 0.25%, even while the economy…