Independent Financial Advice Delivered Wherever You Are In The UK

Via Zoom, Phone or In-Person at our Sutton Coldfield offices. Call Our Friendly Team Now 0121 355 4455 to Secure Your Retirement

Oaklands Details

0121 355 4455
info@oaklandswealth.com
12A Duke Street
Sutton Coldfield
West Midlands
B72 1RJ

Oaklands Wealth Management Ltd

Are you holding too much cash?

The Financial Conduct Authority (FCA) says many savers may have too much cash and face the risk of wealth erosion.

Are you holding too much cash?

As the regulator for personal financial products, the FCA is rightly concerned about financial scams and savers who are encouraged to choose inappropriate high-risk investments. Both are serious issues:

  • The FCA says that 3,378 consumers reported an estimated loss of £569 million to investment fraud in the year to 31 March 2021 – an almost threefold increase since 2018. On average, the loss was over £24,000 each.

 That great old phrase springs to mind when avoiding scams: if it looks too good to be true, it probably is.

  • Research undertaken for the FCA highlighted a lack of awareness of the risks associated with investing. Nearly half of investors who chose not to seek financial advice failed to recognise that ‘losing some money’ was a risk of investing.

Younger investors are taking high risks – 44% of cryptocurrencies such as bitcoin are held by the under-34s. However, nearly two thirds of that age group also claim a significant investment loss would have a fundamental impact on their current or future lifestyle.

Against that background, it is perhaps surprising to see the FCA also warning individuals against holding too much cash: “Many consumers who might gain from investing currently hold their savings in cash”.

Other FCA research suggests that over a third of adults with ‘investible assets’ exceeding £10,000 hold that wealth entirely in cash. Lower the barrier to more than 75% in cash and the proportion rises over half.

The FCA says – and the graph underlines – “Over time, these consumers are at risk of having the purchasing power of their money eroded by inflation”. At the time of writing, CPI inflation was 3.2% while the best fixed interest rate was 2.00% on a five-year bond.

We all need some cash as a rainy-day reserve to cope with the unexpected. Beyond that level, a different reason is required to hold cash in a world where interest rates are outpaced by inflation.

That is exactly why at Oaklands Wealth we favour a diversified actively managed portfolio of assets suited to your age and risk profile which do not include a significant amount of cash.

If you find yourself sitting on other cash savings please consider combining them with your diversified portfolio as the longer you delay, the more inflation will erode the value of your cash.

Interested in finding out more?

Seeking a second opinion on your financial future costs you nothing.

Simply call our friendly team on 0121 355 4455 or drop us an email to appointments@oaklandswealth.com to arrange a confidential chat.

Oaklands Wealth Management, founded by Helen Blackburn in 2004 advises clients across the UK on retirement planning, pensions & investments.

Her firm holds British Standard BS 8577 for client service & investment process.

Minimum investment is £500,000 (£650,000 for pension transfers).

IMAGINE YOUR PENSION & SAVINGS 100% UNDER CONTROL…
Book a call

Similar articles

MEET OUR FINANCIAL ADVISORS

Click to view profile
Click to view profile

THINKING OF MOVING FROM YOUR EXISTING ADVISOR?

It’s easy to move on from another advisor.
We’ll handle everything.

All that’s needed is for you to sign some letters of authorisation and we’ll do the rest.

None of your investments will be switched into new funds until you’ve agreed with our recommendations and you’re fully happy with any changes we propose.

Book a call

7 KEY FEATURES OF THE OAKLANDS WEALTH MANAGEMENT SERVICE

British Standard BS 8577 Awarded Service

12 Month Money Back Service Guarantee

Lifetime Cashflow Planning

Risk Adjusted Personal Investment Portfolio

ISO 222222 Certified Financial Advisors

Monthly Fund Analysis

2 Investment Portfolio Reviews Per Year

A WORD FROM OUR CLIENTS...

“I have been using Oaklands’ services since 2007, following my changed financial circumstances from divorce. Helen’s advice and handling of my investment portfolio has enabled me to become more relaxed about my financial situation and to not worry as much as I did in the early days, when handling finances was new to me.”

Lynne Turner

A WORD FROM OUR CLIENTS...

“Deciding to retire early I needed professional ongoing advice to navigate our financial future. Upon visiting Oaklands, the options were clearly explained and a risk analysis undertaken. Even during these strange times, regular reviews and conversations are taking place and I felt I made the right decision choosing Oaklands.”

Rob Parkes

A FRIEND FOR YOUR FINANCIAL JOURNEY...

THIS IS NOT A DIY SERVICE – WE TAKE FULL RESPONSIBILITY FOR SETTING UP YOUR PENSIONS AND SAVINGS. FOR LIFE.

No half measures. We don’t set it up then leave you all at sea. We manage your investments ongoing and hold ourselves accountable for steering you through your financial journey.

This phrase came from a client who said that’s exactly what we felt like to him, he said “you are like a friend or good neighbour who’s always got my best interests at heart.”

Whatever the reason you come to us we care. We really care. Like it’s our own money.

Tidying up bit and bobs of pensions and putting them neatly in a pot you have full control over.

Making sure you get all the tax efficiencies legally available to you to enhance your money.

Pointing the microscope on 3,000+ funds and finding the best ones to secure your retirement.

Get in touch

FEES
FEES
Find out more
OUR TEAM
OUR TEAM
Find out more
CLIENT JOURNEY
CLIENT JOURNEY
Find out more
ACCREDITATIONS
ACCREDITATIONS
Find out more