Wednesday, 18 August 2010

Savings?

·        Inflation back on the agenda
·        What interest rate are you getting?
·        Do you have a financial plan?


I make no apology for being controversial. Part of my make-up is to ‘tell it as I see it’. Something that is happening concerns me, whether you are in Britain, Ireland or Spain. However, I think a good financial plan can sort it out.

Many UK and Irish residents in Spain still have significant Savings in UK Banks and Building Societies. There are a variety of reasons for this but the one which concerns me most can be called ‘inertia’. “I should do something about it but I never seem to get round to it!” Maybe you should email to be introduced to a qualified adviser.

Tuesday 17th August 2010 was the day that the latest set of inflation figures were announced in the UK. The Retail Prices Index (RPI) was the long standing measure of inflation and currently stands at 4.8%. Governments have tweaked the indices and more recently the Consumer Prices Index (CPI) has become more widely used. The CPI now stands at 3.1%.

CPI in future will be used to up-rate pensions. It must be a co-incidence that it’s lower than RPI.

I looked at the best savings rates. Easy access, no notice, Halifax at 2.8% was the best I could find. You can lock yourself in for longer but then you pay a penalty for withdrawing your own money!

So you get savings rates lower than the rate of inflation and your cash is reducing in value as time goes by. That in summary is why you need a financial plan! To be introduced to an authorised adviser with knowledge of the UK and Spain, please contact me.

Time to stop the inertia, avoid your Savings becoming Losings.