Investing is a smart and effective way to maximize your income and ensure that your money is working hard for you. However, despite its potential benefits, many individuals remain hesitant to start investing. A recent study by Lloyds Bank identified several reasons for this reluctance, with fear and a lack of understanding topping the list.
Fear of Losing Money: Nearly half of those surveyed who were without investments cited their unwillingness to risk losing money as a significant deterrent. This fear is a common barrier to investing, but it often stems from a lack of knowledge and understanding.
Complex Financial Jargon: Financial terminology can be daunting, and 38% of respondents admitted to feeling baffled by complex terms. For example, terms like “asset class,” “growth fund,” “gilts,” and “risk appetite” left many respondents confused. Even widely used terms like “inflation” were not fully understood by 29% of the participants, and 6% claimed they had never heard of it.
The survey findings highlight a significant gap in financial literacy, even regarding terms frequently mentioned in the media and political discourse.
The Solution: Financial Education & Support
Addressing the fear of investing and the confusion surrounding financial jargon requires providing individuals with the knowledge and support they need to make informed financial decisions.
1. Financial Education: More than half of those surveyed expressed a willingness to learn the basics of investing with the right support. Simplified instructions and explanations can make investing less intimidating for beginners.
2. Expert Guidance: A professional financial adviser can play a crucial role in bridging the knowledge gap. These experts can assess your financial situation, understand your goals, and recommend suitable investment options. Furthermore, they can demystify complex terminology and answer your questions, ensuring that you feel confident and informed in your financial decisions.
Investing doesn’t have to be a daunting prospect. With the right resources and support, you can overcome the fear of losing money and the confusion caused by financial jargon. A financial adviser can empower you to make informed decisions, helping you make the most of your money and assets.
If you’re interested in exploring investment options or have questions about financial terms and concepts, don’t hesitate to get in touch. We are here to provide the guidance and support you need to embark on your investment journey with confidence.
How can I get in contact to discuss my own financial planning requirements with Howard Wright?
As always, we’ll be happy to discuss all aspects of financial planning with you and answer any questions you may have.
To discuss your finances free of charge, please contact Ashley Smith one of our Chartered Financial Planners at Howard Wright, you can call him on 0345 688 4939 or you can fill in our enquiry form below, it only takes 20 seconds to complete. We look forward to hearing from you and seeing how Ashley can help.
Disclaimer
This article contains information from sources believed to be reliable but no guarantee, warranty, or representation, express or implied, is given as to its accuracy or completeness. Howard Wright Ltd does not undertake any obligation to update or revise any future statements. Past performance is not a reliable indicator of future results. Investments can go down as well as up and actual results could differ materially from those anticipated. This article is for information purposes only and has no regard to the specific investment objectives, financial situation or particular needs of any person as such, the information contained in this article is not intended to constitute, and should not be construed as, investment or financial advice. Appropriate personalised advice should be taken before entering into any transactions. No responsibility can be accepted for any loss arising from action taken or refrained from based on this publication. Howard Wright Ltd is Authorised and regulated by the Financial Conduct Authority.