Don't leave your investments on ice this New Year

Article

09 January, 2009

When the Bank of England Monetary Policy Committee announced their January 2009 decision to cut interest rates to 1.5 per cent it signalled the Bank's lowest rate since it was founded in 1694. It is the first time in the bank's history that rates have fallen below 2%

Interest rates have tumbled worldwide and this has inevitably led to a sharp decrease in the amount of income available for deposit based investors.

2008 was a turbulent year but that is behind us now and there are many ways for people to get their finances fighting fit for 2009.

New life can be put into existing investments by moving into different funds or by adding new funds to further diversify portfolios.

Market Volatility is still a worry but it is not such a worry to the regular investor who then can benefit from pound cost averaging.

Tax efficient savings must be considered because now more than ever savers cannot afford to lose their interest or gains.Investors should consider not just Cash ISAs and make use of their full annual ISA allowances (£7200 ) . Tax payers should consider how the tax efficiency of pensions can make their money go further.

Never before has the need for Independent Financial advice been greater.

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