Fortune really can favour the brave – that's the message from a Shropshire financial firm for savers looking to boost their income in the face of a recession.
Bank interest rates are now about three per cent, but 10 per cent inflation is wiping out any benefit from traditional savings accounts, according to Lee Fellows, director of Q Financial Services.
Lee advises those with money to invest to be brave and look for global and higher risk investments, where the yields can be much better.
He said: “The bank base rate is now at about three per cent, and savers will undoubtedly be the main beneficiaries of that. Inflation is soaring though, which means the real value of your cash is probably still falling year on year.
“With a two-year recession forecast in the UK, investing in global strategies is looking a lot more appealing for many savers.
“If you can afford to be brave and accept a higher level of risk, the rewards can be impressive. We have seen that a typical multi-asset portfolio of UK and global stocks and shares has delivered about 43 per cent yield over the past five years, at the upper end of the risk spectrum.”
Lee said investments had been helped by a FTSE buoyed by the prospect of China relaxing its covid restrictions.
He added: “Investment markets are offering opportunities for long-term investors to diversify their assets across a varied portfolio and gain real term growth as a result. This type of investment isn’t for everyone though so, as with all money matters, it is vital that you get independent advice from a reputable financial advisor."