Over the last few years, the Bank of England (BoE) has incrementally raised the base rate of interest to help bring levels of inflation down.
The base rate is currently higher than inflation an, as a result, many savings accounts currently offer interest above inflation.
However, this is not the norm.
The BoE has already reduced the base rate by 0.25% and may continue to lower it further, though they are likely to proceed with caution.
Investing often gives you a better chance of beating inflation over longer horizons. Over shorter horizons, cash and shares have a roughly similar chance of beating inflation. But as time goes on, shares have historically improved their chances considerably more than cash.
There are strategies for protecting your investments. Portfolio diversification is among the most effective strategies for safeguarding your wealth. It can also be a good idea to remain patient and resilient amid market downturns as your wealth has typically been more likely to recoup in the market than if you liquidated.
To find out more, get in touch.
https://perennialwealth.co.uk/
0117 959 6499
info@perennialwealth.co.uk
Trym Lodge, 1 Henbury Road, Bristol, UK, BS9 3HQ
