How to protect your wealth
Are you looking for a better way to protect your wealth?
The number one goal when investing is to protect the real value of your wealth. That means over time you want to try to achieve inflation beating returns, whilst avoiding unnecessary risk. When there is a lot of uncertainty in the economic and political climate it can be tempting to seemingly avoid risk and save in cash, but when inflation is on the increase and interest rates are low this could be the riskiest thing for your savings.
An investment portfolio built using a range of assets can protect you from the risk in any one market, whilst enabling you to benefit from market movements.
Here we provide you with some key insights on how you can set yourself up to be protected in such scenarios:
1. Diversify your investment portfolio
Protect yourself against market volatility by diversifying your investments. Gain exposure to a global range of asset classes including equities, bonds and commodities. This can be achieved by investing using Exchange Traded Funds.
2. Avoid high fees
Nothing erodes the value of your investments over time like excessive annual fees. By switching to a lower cost provider the value of money left in your portfolio will be greater year on year and as a result will have a greater compounding effect over the long term leading to greater returns.
3. Choose a discretionary investment account
By choosing a discretionary investment account you no longer have to pick and choose your investments on an ongoing basis. This type of account comes with a team of investment professionals with years of experience who will constantly monitor and rebalance your portfolio, at no extra cost.
4. Pick the right provider
Choosing a wealth manager that can offer a personal touch is invaluable. Moneyfarm offers a chance to get a portfolio tailored around your investor profile; a key element in making sure you are aligned with your individual investment goals over the medium term.
The longer you wait to make an informed investment decision the more value you miss out on every day. If you wish to act today on any of the above points you can try out Moneyfarm for free, and even build a test portfolio before you commit to anything.
Need a better way to protect your wealth?
Create a test portfolio
See what you could achieve with us