Inflation is not going away any time soon, and you should be taking proactive measures to protect your hard-earned money, warns the CEO of one of the world’s largest independent financial advisory and asset management organisations.
The stark warning from deVere Group’s Nigel Green comes as the UK’s consumer price inflation quickened for the first time in 10 months in December, rising to 4% from November’s two-year low of 3.9% and hitting anticipations for an early Bank of England rate cut.
He says: “The unexpected rise in inflation has made the Bank of England’s task more difficult.
“Inflation remains sticky – no doubt. As such, you should be doing as much as possible now to protect your short-term purchasing power and longer-term wealth.”
Diversification remains a fundamental principle for wealth protection. “Spreading investments across various asset classes, including stocks, bonds, and alternative investments, and across sectors, geographies and more, can help mitigate the impact of inflation on your overall wealth,” notes the deVere CEO.
Stocks that consistently pay dividends will offer a reliable income stream, which may help offset the impact of inflation. “Those firms with a track record of raising dividends can provide a source of increasing income over time, helping you maintain your purchasing power despite in an inflationary environment.”
Nigel Green continues: “Regularly reviewing and adjusting your investment strategy is crucial. Adjusting your investment portfolio with an advisor in response to changing market conditions will typically boost resilience to inflationary pressures.
He concludes: “The Bank of England’s jobs has suddenly become more complicated. This shouldn’t be taken lightly if you’re serious about protecting and growing your wealth.”