Rising inflation and low interest rates mean investing could be the best step for building your wealth.
Consumer Price Index 12-month inflation rate (CPI), excluding owner-occupier housing costs, rose to 0.7% in October, up from 0.5% in September.
Becky O’Connor, Head of Pensions and Savings at Interactive Investor, said: “Rising inflation at a time of ultra low interest rates demonstrates the risks of keeping too much money in cash savings accounts.
“While cash is an important part of anyone’s long term savings strategy, there should be a red warning for anyone who keeps more than they need in cash accounts, particularly money not needed in the short term, as it may be losing value in real terms unnecessarily.
“There may be nervousness about the stock market from beginner investors with not a lot they can afford to lose, as well as older people who feel much is at stake if investments do not perform well.
“But with careful research and sensible selection of investments, or readymade portfolios tailored to risk appetites, investing could be the best step people ever take for building their wealth.
“Regular, monthly investments can help smooth out the impact of stock market volatility on returns from investing.”
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