Simple ways to protect your family savings

Goldex Team

Editorial content

We’ve been educated with the principle of saving money, especially for a rainy day. You’re told to put aside at least 30% of your monthly income into a savings account, thereby creating a safety net you can turn to just in case. Theoretically, it makes perfect sense – until something catastrophic happens.

A financial crisis such as having to use your funds for an event like a surgery or death in the family could be regarded as a minor affair compared to the global financial crisis, which shook the markets leaving hundreds of thousands of people devastated with the news that their retirement and investments had sunk into a black hole.

This global crisis had left everyone wondering what had gone wrong. Pensioners did the right thing by funding their retirement savings plans, so how could this have happened?

The reality is many people were not informed about how to protect their assets, as a few gold nuggets of practical advice on personal investment strategies would had helped to secure a lot of the money that was lost. Nonetheless, the mantra upwards and forwards does indeed ring true. Here are some tips to protect your family savings.

Maintain a diversified portfolio

The phrase “don’t put all your eggs in one basket” couldn’t be more accurate in the case of protecting your savings. It’s crucial to maintain a wide selection of assets in your portfolio. In today’s financial market, you have a plethora of options, from setting up life insurance, bonds, stocks, annuities, and CDs, to investing in precious metals like gold.

Those options carry with them different types of risk and investment performance. So, make sure you diversify your investments, and remember that gold is one of the more steadfast investments to have in your portfolio.

Be wary of investment fads

Part of what makes investing exciting is the risk. Wanting to invest in high art or the next Google are attractive propositions. But the reality is, if you’re part of the not so wealthy part high-class society, then you need to be aware of taking high risks, requiring funds you cannot afford.

It’s best to think ahead, be realistic about your investment options and consider what these investments will mean to you in 20 years from now. Remember, when you invest your savings, you need to think about long-term gain.

Protect your family savings

Embrace the digital economy

It has been common in the past to walk past a whole load of pamphlets sitting at the entrance of your financial institution. Those paper handouts contain information that could save you a lot of time, and help you with your decision making. For instance, some UK-based banks are on a ‘passport scheme’, meaning any type of protection offered is regulated by the Bank of England.

Today, the United Kingdom is experiencing the Fintech revolution and a lot of organisations have grown rapidly due to embracing the digital economy. Financial institutions that will survive in the future are the ones which have adopted technology in their daily operations.

The updated version of those old pamphlets are the Privacy Policy and Terms and Conditions documents that you can find on the website of any of the new UK-based FinTech companies. And yes, they are regulated by the UK laws, so you can breathe easy since your investments and savings will be safe.