Smart moneysecrets -how to improveyourincome prospects

Wish your income prospects wouldimprove?

Whether youare asaver or aspender,planning your retirement, orenjoying your silveryears,weall want to getour moneyworkingharder.Butin thecurrentfinancial climate,it’s difficulttoknowhow. It’s12 yearssincetheonsetof thefinancial crisisandthe effects were still beingfeltascovid arrived, meaningthatsavers must alsoweather thestormof another global recession.Higher taxation,wagestagnation and risinglivingcosts aresomeofthe consequences. Cashsavers inbankand building society depositshave been thereal losers in recent years,andthe outlookappears bleak. Retirementcannow last 30 yearsormore,soit’svital that yourinvestmentslast.Any income generatedalsoneedsto maintainitsspendingpowerto combatthe threatof inflation. Historyshowsthat througha combination of capital growth anddividend income,investing in equities, or shares,has providedinvestorswith abetter chanceof outpacinginflation over thelongterm,compared with otherassetclasses. Theeconomiccrisis created by thepandemic has forced many companiestosuspend or reducetheirdividendpayments. However,itis expectedthat companieswillreinstatetheir dividendpoliciesassoonasit’s prudenttodoso.Thelong-term trackrecordofshares delivering a risingincome remainsintactand investing in companies remains acorecomponentof an income strategy. Investorsshouldhavebasic principles in placethat they can stick to over thelongterm. For most investors,thebestway to harnessthe dividendpotential ofequities is throughinvestment funds, whichspreadyourmoney acrosstheshares of many worldwide companies. Equity funds seektoachieve anattractive totalreturnthrough acombination of dividend income andcapital growth.A diversifiedfixed-intereststrategy will helpposition yourportfolio to helpbenefitfrom growthand steady levels ofincome. Commercial property has a strong, long-term trackrecord forgenerating areliable stream of rentalincome, as well asthe scopefor capitalappreciation. Importantly,itsreturnsare largelyindependentofother asset classes. Investorsshould, however, note that investinginrealasset classes(equities,corporate bondsand commercial property) does notprovide thesecurityof capital whichischaracteristicof adepositaccountwith abank or building society.

To receiveacomplimentary guide covering wealth management, retirement planningorInheritanceTax planning, contactMD Wealth Managementon 01379415511or emailmichael.duale@sjpp.co.uk.