On a recent visit to a local care home, I was struck by how much emphasis there was on retaining and even improving the residents’ mental and physical health.
Puzzles, games, group exercises, tests, debates, music, physical exercise, different culinary experiences and much more. Indeed, as you walk towards the main entrance, you can see exercise ‘Swiss balls’ stacked in one window, ready for physical mobility sessions.
There are a variety of visitors who reach out to the residents to make their lives as full and rewarding as possible.
Why?
If you don’t regularly engage your body and mind, the abilities that you once took for granted can slip away. Exactly when this happens is down to lifestyle, genes and sometimes sheer bad luck.
There are 40 year-olds who live like they are 70, and 70 year-olds who put many 40-somethings to shame.
Challenging the body and mind is vital, as is broadening one’s horizons and being open to new experiences. We only stop growing and developing as people when we choose to, or when life forces us to stop. If you still have the chance to grow, take it!
What has any of this got to do with Financial Advice?
Improving or just retaining your physical and mental abilities has a parallel with money.
Keeping money (beyond what is necessary as an emergency fund) in cash savings, when earning a below-inflationary return, is the same as not exercising, not learning, not testing your mind and body.
It guarantees a negative outcome, being that the spending power of your money will reduce over time.
A guaranteed loss! Not so ‘safe’, after all. However, cash/deposits are secure and are afforded more protection than investments.
Money, for it to keep up with the passage of time, needs to be put to work, just like you and I need to push our boundaries for as long as we have the ability to do so.
Of course, no monetary ‘home’ can guarantee a specific return, and none can guarantee that the return will outpace (or even keep up with) inflation. Investments can fall in value as well as rise and you may not get back the full amount that you invested.
However, there is a clear logic in choosing a potential negative return (investing) against a guaranteed negative return (cash savings earning less than inflation). Investing requires patience, the right balance between cash and assets, not having all of your eggs in one basket, and effectively using the available tax wrappers.
This is where good advice enters the conversation. With good advice and action, money can be invested in a manner that suits the individual, their attitude, experience, concerns, hopes, circumstances, goals and more.
Advice matters!
A summary of this blog;
- Money needs to be put to work in order for it to produce a positive real return.
- Investments carry risk. Their value can fluctuate and you are not guaranteed to make a profit. Investing should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
- Investments do not afford the same capital security as deposit accounts.
- If you don’t exercise, then start! Find something challenging yet enjoyable. Then get on with it, consistently. Aim for measurable improvement over time. Have fun.
- Get outside (even if it is raining). Switch off the TV. Experience life while you can. Many of the residents in that care home, that I mentioned earlier, would love to have the opportunities that you still have.
- Get Independent Financial Advice and get your money & assets working for you.
- The most precious asset is time, don’t waste it.
You can contact one of our independent advisers for personalised advice and support in making confident, informed decisions by using our Facebook or Contact Us pages, or speaking to a colleague in our office on 01329 282882.
Please note: The content of this blog is for your general information purposes only and does not constitute as Inheritance/ investment advice.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount that you invested. Past performance is not a reliable indicator of future performance.
