a wealth double-whammy
Inflation and interest rates: a difficult duo for your cash, and one reason to explore the option of investing.
Top-up my investments now
The value of investments can go down as well as up and you may not get back the full amount you invest.
a wealth double-whammy
Inflation and interest rates: a difficult duo for your cash, and one reason to explore the option of investing.
The value of investments can go down as well as up and you may not get back the full amount you invest.
How much could your savings be losing?
With the cost of living rising (also known as inflation), your cash may struggle to keep up while life overtakes it. And things are hardly made any easier by a decade of record-low interest rates, which have kept cash firmly into the slow lane.
Here's how that looks when we reflect on the last 10 years*…
Even though the cash amount increased over ten years, with high inflation and low interest rates, purchasing power of cash is £4,182 less than it otherwise would be for £25,000.
There’s no guarantee the next ten years will look like this as well, but if you’ve parked cash away hoping for it to grow over the long term, you’re possibly now asking ‘what’s the point’?
Investing in your future
Given this backdrop, you might consider investing some of your cash. Especially if you:
- have more than you need to cover emergencies
- have a long-term goal for your wealth
- can afford to leave your investments untouched in the medium-to-long term
- understand and are comfortable with the risks associated with investing
Even though the cash amount increased over ten years, with high inflation and low interest rates, purchasing power of cash is £8,781 less than it otherwise would be for £50,000.
There’s no guarantee the next ten years will look like this as well, but if you’ve parked cash away hoping for it to grow over the long term, you’re possibly now asking ‘what’s the point’?
Investing in your future
Given this backdrop, you might consider investing some of your cash. Especially if you:
- have more than you need to cover emergencies
- have a long-term goal for your wealth
- can afford to leave your investments untouched in the medium-to-long term
- understand and are comfortable with the risks associated with investing
Even though the cash amount increased over ten years, with high inflation and low interest rates, purchasing power of cash is £17,561 less than it otherwise would be for £100,000.
There’s no guarantee the next ten years will look like this as well, but if you’ve parked cash away hoping for it to grow over the long term, you’re possibly now asking ‘what’s the point’?
Investing in your future
Given this backdrop, you might consider investing some of your cash. Especially if you:
- have more than you need to cover emergencies
- have a long-term goal for your wealth
- can afford to leave your investments untouched in the medium-to-long term
- understand and are comfortable with the risks associated with investing
Even though the cash amount increased over ten years, with high inflation and low interest rates, purchasing power of cash is £35,122 less than it otherwise would be for £200,000.
There’s no guarantee the next ten years will look like this as well, but if you’ve parked cash away hoping for it to grow over the long term, you’re possibly now asking ‘what’s the point’?
Investing in your future
Given this backdrop, you might consider investing some of your cash. Especially if you:
- have more than you need to cover emergencies
- have a long-term goal for your wealth
- can afford to leave your investments untouched in the medium-to-long term
- understand and are comfortable with the risks associated with investing
Even though the cash amount increased over ten years, with high inflation and low interest rates, purchasing power of cash is £52,683 less than it otherwise would be for £300,000.
There’s no guarantee the next ten years will look like this as well, but if you’ve parked cash away hoping for it to grow over the long term, you’re possibly now asking ‘what’s the point’?
Investing in your future
Given this backdrop, you might consider investing some of your cash. Especially if you:
- have more than you need to cover emergencies
- have a long-term goal for your wealth
- can afford to leave your investments untouched in the medium-to-long term
- understand and are comfortable with the risks associated with investing
Even though the cash amount increased over ten years, with high inflation and low interest rates, purchasing power of cash is £70,245 less than it otherwise would be for £400,000.
There’s no guarantee the next ten years will look like this as well, but if you’ve parked cash away hoping for it to grow over the long term, you’re possibly now asking ‘what’s the point’?
Investing in your future
Given this backdrop, you might consider investing some of your cash. Especially if you:
- have more than you need to cover emergencies
- have a long-term goal for your wealth
- can afford to leave your investments untouched in the medium-to-long term
- understand and are comfortable with the risks associated with investing
Even though the cash amount increased over ten years, with high inflation and low interest rates, purchasing power of cash is £87,806 less than it otherwise would be for £500,000.
There’s no guarantee the next ten years will look like this as well, but if you’ve parked cash away hoping for it to grow over the long term, you’re possibly now asking ‘what’s the point’?
Investing in your future
Given this backdrop, you might consider investing some of your cash. Especially if you:
- have more than you need to cover emergencies
- have a long-term goal for your wealth
- can afford to leave your investments untouched in the medium-to-long term
- understand and are comfortable with the risks associated with investing
About Coutts Invest
Invest in just a few clicks
Start with £500 minimum, with the option of regular monthly contributions from £50.
Your invesTments in one place
You can check on how your investments are doing, change your fund choice or invest more – 24 hours a day, 7 days a week.
expert invesTment management
We’ll invest in a globally-diversified fund of shares, bonds and other assets across the world on your behalf.
About Coutts Invest
Invest in just a few clicks
Start with £500 minimum, with the option of regular monthly contributions from £50
your investments in one place
You can check on how your investments are doing, change your fund choice or invest more – 24 hours a day, 7 days a week.
Expert investment management
We’ll invest in a globally-diversified fund of shares, bonds and other assets across the world on your behalf.
* Source: Bloomberg[RD(PC)1], 31 December 2020. Inflation calculated using UK Month-on-Month CPI. Cash value calculated using GBP 3 month LIBOR. Nominal and real values are inclusive of UK interest rates. Interest compounded using monthly data.
When investing, past performance should not be taken as a guide to future performance. The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment.
