IT is a sobering thought that, according to the Investment Association, £200 billion-worth of people’s savings is languishing in cash ISAs, while Hargreaves Lansdown claims there is a further £400 billion lying unloved in non-performing ‘dog funds’.
With today’s low interest rates, this money is earning virtually nothing! If you are one of the people using this ‘under-the-mattress’ technique, then it really is time you woke up and smelt the coffee.
If you want to maintain your ambitions regarding your current and future lifestyle, be self-sufficient in your old age and leave an inheritance, then you must start to make your savings work hard now, and continue to graft for the foreseeable future.
Seeking assistance from the personal finance industry is unlikely to help you in any meaningful way, as their efforts are concentrated on maintaining the God-rewarded enterprise they have created to enrich their own pockets.
Now is the time to take control of your own financial destiny. Your savings and your investments are your ‘baby’. Ask yourself a simple question. Will you, or an outsider, have the most interest in securing you a well-financed retirement?
Not everybody will have the ability and mental approach to run their own investment portfolio. But there are many more people who can, than think they can. Today, DIY investing is easy for anybody with a computer and access to the internet. The arrival of fund-supermarkets has made it cheap, quick and easy to manage a portfolio.
The Saltydog Investor has been developed to assist people in making these initial steps. We are enthusiastic advocates of active fund momentum investing and, in the four-and-a-half years we have been operating, our cautious demonstration portfolio has grown by over 47%.
There will be a bi-weekly Saltydog column in the Olive Press to guide you through our methodology and safely build your confidence, allowing you to reap the benefits of becoming a DIY investor.
As an example, the graph below shows a handful of funds that could be an alternative to having all your savings in cash.
For a better understanding of our practical approach to momentum investing in funds, please have a look at the Saltydog website. www.saltydoginvestor.com