Savings rates continue to languish at disappointingly low levels, and the economic uncertainties and potential pitfalls of the yet-to-be-navigated Brexit process only serve to pile on further concerns about the best way to save. Most experts are currently advocating a diverse portfolio of savings and investments, and here’s a quick look at some of the most popular assets, and some of those which a number of analysts believe are worth considering in the present climate.
While Brexit, in combination with pre-existing market trends, is set to bite into the rental yields on offer, property is still considered a firm investment choice. Regardless of what Brexit brings, most experts agree that a well-chosen property asset will be one of the best ways to weather the storm thanks to strong fundamentals and the fact that rentals will continue to generate liquid income even if capital growth becomes stagnant. You should, however, be aware of tax changes taking place over the next few years and how they will affect you.
Stocks and Shares
Stocks and shares will undoubtedly remain a popular investment option, but of course they are a volatile place to put your money at the best of times. So far the stock market has performed well since the economic shock of the referendum result, partly fuelled by the reduced value of the pound stimulating international activity. However, there is still a lot of uncertainty about how things will continue to pan out, and one of the most popular overseas stock markets for Britons – the US – is similarly unpredictable right now. This is not to say shares can’t be a good investment and a good source of diversity, but choosing carefully and being informed is even more key than usual.
With its “safe haven” reputation, gold has experienced a sharp increase in demand as national and global economies have been becoming more and more uncertain of late. While gold, with its lack of liquid dividends, is often dismissed as a way of squirrelling away considerable wealth but it is well worth considering as a relatively safe way for any investor to increase diversity and tie their money up in something that will pretty much always have value. Even so, gold can be more volatile than its reputation would suggest. The last time speculation on gold reached high levels, this was followed by roughly twenty years of declining values.
High-Interest Current Accounts
Naturally nobody wants to put all of their money away in these kinds of investments. Some of it will need to be kept in cash and invested in simple bank accounts, but working out what to do with this cash in such a low-interest environment can be a challenge. If you can meet the specific terms and restrictions, most high-interest current accounts offer higher interest rates than most savings accounts right now – often several times greater! If you can meet the terms of them all, it can even be worth taking out one or two additional high-interest current accounts for use almost completely as savings accounts.