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Preserving your wealth

When you’ve worked hard and invested carefully to build your wealth, you want to look after it. That’s why it’s important to understand your genuine feelings about wealth preservation and risk from the outset. We’ll always be very straight with you about what is, and is not, realistic in terms of managing your money.

Investing isn’t for everyone as some people don’t like the uncertainty or potential losses that stock market fluctuations can bring, and instead choose to deal with their bank manager about savings accounts, which is perfectly fine.

If, however, you are taking a longer-term view, we can look carefully at what you want your money to do for you and invest it in such a way that mitigates the impact of challenges such as inflation, market risk, tax demands, unexpected emergencies and care requirements.

With the confidence that comes from having your money invested strategically to preserve your wealth, you and your family can focus on achieving your life goals and dreams.

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Find out how we can help you invest for wealth preservation.

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Only 16% of UK adults rate themselves as highly knowledgeable about financial matters.

Financial Conduct Authority, 2018

Keen to preserve your wealth? Consider this.

How does wealth preservation differ from other investment strategies?

Is inflation a threat to your wealth?

What impact does tax have on wealth preservation?

Does insurance have a role to play in preserving wealth?

How does wealth preservation differ from other investment strategies?

All investment strategies should be designed to help you achieve your specific goals, by choosing the right investments, getting the right balance of risk and making sure you always have access to enough cash when you need it.

 

The difference lies in the focus and balance of each strategy. Wealth preservation still seeks to grow your investment but may focus on lower-risk asset classes such as cash and fixed interest assets. Above all, the goal is loss aversion and risk mitigation.

Is inflation a threat to your wealth?

Inflation is the big enemy of long-term savings pots. Even at the historically low rates of around 2% in the UK since 2008, a sum of £10,000 a decade ago would be worth only around £8,000 in today’s money.

 

Keeping your wealth largely in savings accounts, which offer interest rates below inflation, is safer in the short term but will erode your wealth in the long term.

 

While investments may be seen as more risky than safe-haven bank accounts, the hard reality is that inflation robs savers of a big chunk of their wealth in real terms. If you’re looking to safeguard your wealth, Investec can help figure out the right approach for you.

What impact does tax have on wealth preservation?

Taxation has the power to undermine many fortunes. Our tax regime is changing continually and if you don’t keep up it can be costly. As a simple illustration, most people are surprised to discover that ISAs are liable for Inheritance Tax (IHT).

 

3,000 millionaires left the UK last year, with the majority of them citing increased taxation as the main reason¹. Our aim is to ensure you make the most of all the tax allowances, reliefs and entitlements that you are legally allowed.

 

The taxman is always moving the goalposts but from IHT and Capital Gains Tax (CGT) mitigation, to setting up trusts and advising on legitimate offshore tax strategies, we can help you manage your wealth in the most effective way.

 

¹Global Wealth Migration Review, 2019

Does insurance have a role to play in preserving wealth?

Insurance is a vital element of any wealth preservation strategy. It can provide protection against threats that can potentially undermine family wealth, from death and major illness to serious property damage or liability for an accident.

 

It is also important to make sure valuable assets – from fine art to classic cars - are properly insured against damage, theft or loss.

 

Ensuring that your protection policies are up-to-date and best suited for your current circumstances will contribute significantly to wealth preservation and peace of mind.

Ready to have a conversation?

If you’d like to have an informal, no obligation, conversation about how we can help you preserve your wealth, please get in touch.

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During our time with Investec we have seen significant volatility in the financial markets and have always felt reassured and in no doubt that our money is being managed with due care and diligence.

John & Kath, North West

Your next steps

Investing to grow your wealth

Growth investing is just one of several specific investment strategies designed to fulfil particular needs. In this case, your growth strategy aims to build your wealth over the long term and maximise your options in life.

Want to learn more?

Investec can help you on the next exciting stage of your financial journey.

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Let us create the right portfolio to meet your personal goals.