If I have a bill to pay in one month’s time or one year’s time then the best place for me to put some money to pay that bill is probably a bank or building society account where I know my capital is safe and where I might receive some interest (however small).
This is because for short periods of time where certainty is required cash is probably the best place for my money.
On the other hand if I want to retire in say twenty years time, then cash is probably not going to be the best place to invest my money.
After all over long periods of time inflation tends to erode the value of cash accounts and it is pretty likely that I won’t already have accumulated a big enough pile of cash to fund my retirement.
It is likely then that I will need to invest my money in some assets, typically shares, that stand the chance of growing in real terms (in excess of the rate of inflation) over time.
My examples above are designed to demonstrate just one thing – the investment decisions we make should be very carefully aligned with our investment decisions.
If they are not it is highly likely that we will make the wrong investment decisions.
Our free workshop “How on earth should I invest my money?” on 23rd November 9.30am to 10.30am at the Cranleigh Arts Centre will go into much more detail.
Book your ticket now on www.icl-ifa.co.uk/events or call us on 01483 274566.
