Irwell Wealth Management

Irwell Wealth Management Irwell Wealth Management is based in Manchester and the North West and has been established since 20

Feedback Friday! 😁
08/09/2023

Feedback Friday! 😁

IS CASH ALWAYS KING? 🤔🤑 There is a key difference between saving and investing. Holding assets in cash is SAVING, this i...
16/08/2023

IS CASH ALWAYS KING? 🤔🤑

There is a key difference between saving and investing.

Holding assets in cash is SAVING, this is a great strategy when looking to meet shorter term goals. However, when looking more longer-term inflation erodes the purchasing power of savings and therefore, we invest with the goal of beating inflation or as a minimum keeping pace.

INVESTING means putting your money into assets that you feel will increase in value over time. Although expected returns can fluctuate and are not guaranteed, by having a long-term plan you can manage your risk and achieve your objectives of higher returns.

In the graph below you can see the difference over a 20-year period between the Bank of England Base Rate, UK Consumer Price Index (inflation) and investment index’s such as the S&P 500. The difference in the return provided by the BoE Base Rate and the S&P 500 is staggering, displaying what can be achieved by investing as opposed to saving cash. It also highlights that although interest rates are currently very attractive, this is not always the case, and these can fluctuate like an investment. The actual average yearly return from the BoE Base Rate over the 20 years works out at 2.075%.

Below we have run one of our cashflow models as an example. In this example the client is 30 years old and begins cash saving of £500 per month as well as investing £500 per month. The cash savings interest has been set at the 2.075% per annum 20-year average, whereas the investment is based on a variable benchmark with an average return of 5.73% per annum. The savings/investments stop at age 68 when the example client would like to retire, as you can see at age 68 the difference between the two pots is £168,177, that’s a huge difference just by investing compared to saving.

When you look past this another 10 years (to age 78) where no contributions are made, the cash as you would expect reduces in value due to inflation. Whereas the investment continues to grow meaning the difference has now increased to a whopping £382,266!

So we will let you decide, is cash always king?👑



Please be aware the values of investments may go down as well as up, and you may get back less than you invested.

MEET THE TEAM! 🙋‍♂️ Meet Jack, one of our trainee IFAs! 😁
27/07/2023

MEET THE TEAM! 🙋‍♂️

Meet Jack, one of our trainee IFAs! 😁

Is Lurpak really the new Freddo? 🐸🤔 Tackling all the important questions in this quarters update.... have a read through...
27/06/2023

Is Lurpak really the new Freddo? 🐸🤔

Tackling all the important questions in this quarters update.... have a read through below! 📖

Feedback Friday!🖋😄Some more really positive feedback left on our survey...
02/06/2023

Feedback Friday!🖋😄

Some more really positive feedback left on our survey...

MEET THE TEAM! 😁👋Meet Karen, our Office Manager!
26/05/2023

MEET THE TEAM! 😁👋

Meet Karen, our Office Manager!

Feedback Friday! 😁 We pride ourselves on our relationship with clients, here's some of our latest customer feedback... ...
14/04/2023

Feedback Friday! 😁

We pride ourselves on our relationship with clients, here's some of our latest customer feedback...

Start off the easter weekend right, with one of our tips and tricks!🐥 Diversification, probably one of the most importan...
06/04/2023

Start off the easter weekend right, with one of our tips and tricks!🐥

Diversification, probably one of the most important factors of any investment.

So what does it mean.... 🤔

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Barton Hall
Manchester
M307NB

Telephone

+441615377100

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