In a previous article DevDosh Ltd touched on the fact there are so many of the households in the UK do not have savings and less than 20% have any sort of significant savings, this is also true for investments but the two are very different and not too be confused.
In these uncertain economic times it has never been more important to make the most of the capital you have and imperative that you have your money working as hard as possible for you and your family when considering your financial future.
Now any person that is older enough to have a bank account can tell that the two come with a very different set of circumstances and it all depends on what stage of your life you are at, and what your goals are for your capital.
Investment carries risks no matter what type of investment vehicle you choose there is no getting away from that fact, the upside and benefit is the capital growth you can achieve.
Saving usually consists of some sort of savings account with your bank or building society and comes with little risk, although they are not completely risk free and the returns can be minimal.
DevDosh Ltd thinks that the best approach would be to diversify and do both, have savings for those unexpected emergencies that life can throw at us, and have your investments for real capital growth, saving for retirement, a new house, that extra cash to give you and your family the life deserve.
One important thing to note when looking at either savings or investments is liquidity, how soon might you need access the funds. As we both options the better rate of return you see the longer amount of time you can usually expect to tie the cash up for.
Even the very best of online savings accounts will only show you a profit of around 1%, taking into account inflation you could well be losing money effectively you are paying the bank to hold onto YOUR money.
Now if your aim is long term achievements like putting the kids through university, that dream house, or early retirement or just living the life you want to live financially, that is when investments come into their own.
As long as your time horizon is long enough to smooth out the market’s ups and downs, then historically investing has delivered better returns than saving, the question with investing is all about risk versus reward.
UK equities returned 16.75% last year, following returns of 0.8%, 1.18%, 20.8% and 12.3% in the previous four years.
US equities have delivered between 7.25% and 33.5% since 2012.
Real estate returned between 2.45% and 25.2%.
Global equities would have given you 3.4% in the lowest year, and 29.4% in last year’s bumper show.
Now these are some fantastic returns and nobody could argue with that fact but if you are still finding it hard to justify the risk there are other options available other than stocks and shares, that will still show exceptional limited risk returns.
So if like me you want the best of both worlds or ‘your cake and eat it’ then consider the property collective investment scheme as DevDosh Ltd have.
- Fixed terms of 12-24 months
- Security backed investment
- Fixed returns of 10% annual
If you would like full details please visit DevDosh Ltd today.