Let’s Talk About Eggs ..Nest Eggs!

by Infinity

Christians around the world celebrate?Easter, one of the most important celebrations in the Christian calendar and, for believers, a time to celebrate the resurrection of Jesus. For many, it is also a time to eat chocolate eggs in vast quantities!

But we’re not here to talk about Easter eggs, we want to focus on your nest egg.

The last two years has been a time of crisis around the world and during these uncertain and difficult times, it has arguably become even more important than ever to think about a nest egg to safeguard your financial security both now and in the future. And lots of people do seem to have been reflecting on this over the last year or two.

History shows us that in times of economic shock, spending generally declines as consumers stash their cash prompted by uncertainty about the future. This has no doubt been partly responsible for the increase in savings reported in?many major economies?during the pandemic.

In addition, those lucky enough to sustain their incomes have had precious few options for consumption and have therefore been sticking more and more money in the bank. HSBC estimates that households in the eurozone and the UK saved €470 billion (3.9% of GDP) and ￡170 billion (7.7% of GDP) more in 2020 than they did in 2019. And a lot of that money is languishing in bank accounts which offer easy access but very poor interest rates. Which is not smart.

If you are one of the fortunate people who has managed to amass some savings in the bank over the last couple of years, or indeed if your bank balance has always been healthy, it might be time to jump into the world of investment.

Many people are put off investing in the stock market due to the perceived risk. What they don’t realise is that a nest egg in the bank is still at risk of being devalued by inflation. The fact is that there are investment options for even the most risk-averse of investors which will still provide a higher return than a bank over the long term.

The time frame is important. Making a quick buck on the stock market is hard but results are much more reliable over a long time frame, preferably decades, which is why it is so critical to start investing as early as you can.

And while we’re talking eggs, the golden rule of investing is to avoid keeping all your eggs in one basket. That’s where diversification comes in. That simply means investing not only in a wide range of companies and industrial sectors but also across various asset classes including equities, bonds, cash, property, and commodities. Dividing your eggs into these assorted metaphorical baskets helps to protect your assets against market forces which tend to impact different asset classes in different ways. This strategy goes some way to balancing risk.

All of this might make investing and diversifying sound like hard work but it really doesn’t need to be. The key is to work with a professional financial adviser who can help you to establish your specific financial goals and recommend investment management products to fit your requirements. There are loads to choose from where all the hard work of diversifying and balancing risk is done for you by experienced experts who base their decisions on in-depth research.

If you’d like to find out more about making your nest egg work harder for you and generate a better return than in the bank, please drop Alex a line?for a consultation. We have offices across Asia and we work in partnership with?Tilney, one of the world’s most respected investment management firms. Our joint expertise means that your nest egg will be in the best possible hands.

Get in touch with Alex here or at [email protected]

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Tilney is an award-winning financial planning and investment company that builds on a heritage of more than 180 years. They have won numerous awards and their clients include private individuals, families, charities and professionals. They presently look after more than USD30 billion.

At Tilney, your personal wealth is their personal responsibility.

Tilney's award-winning services are now available in Asia exclusively through Infinity, and can be applied to new and (probably) existing investments.

To learn more, drop Alex a line.

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Get in touch with Alex here or at [email protected]