Smart moneysecrets -how to improveyourincome prospects

Wish your income prospects wouldimprove?

Whether youare asaver or aspender,planning your retirement, oren oying your silveryears,weall want to getour moneyworkingharder. utin thecurrent nancial climate,it’s di culttoknowhow. It’s12 yearssincetheonsetof thefinancial crisisandthe effects were still beingfeltascovid arrived, meaningthatsavers must alsoweather thestormof another global recession.Higher ta ation,wagestagnation and risinglivingcosts aresomeofthe conse uences. Cashsavers inbankand building society depositshave been thereal losers in recent years,andthe outlookappears bleak. Retirementcannow last 0 yearsormore,soit’svital that yourinvestmentslast.Any income generatedalsoneedsto maintainitsspendingpowerto combatthe threatof inflation. Historyshowsthat througha combination of capital growth anddividend income,investing in e uities, or shares,has providedinvestorswith abetter chanceof outpacinginflation over thelongterm,compared with otherassetclasses. Theeconomiccrisis created by thepandemic has forced many companiestosuspend or reducetheirdividendpayments. However,itis e pectedthat 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 ofe uities is throughinvestment funds, whichspreadyourmoney acrosstheshares of many worldwide companies. uity funds seektoachieve anattractive totalreturnthrough acombination of dividend income andcapital growth.A diversifiedfi ed 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 e uities,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.