Cassandra Clare’s famous words are apt given the findings of the 59th Barclays Equity Gilt Report.
The report shows us how equity investing and reinvesting dividends can produce impressive returns.
£100 invested in equities at the end of 1899 would be worth just £191 in real terms without the reinvestment of dividend income, but with reinvestment the portfolio would have grown to £28,386.
We can tap into and protect these returns from tax for you.
A good IFA will help you choose the right tax wrapper (ISA, pension etc.). This will have a dramatic effect on the money you can make.
The report showed that over 1, 10, 20 and 50 years – an investment in equities earned more than cash held in a savings account, corporate bonds or gilts.
£1,000 invested would have made £170 over 1 year, £629 over 10, £1,234 over 20 and £13,542 over 50 years.
If your investment objective is maximising growth then reinvested dividends produce a lot of return.
Choosing the right funds to tap into these returns and minimising the tax paid should be a priority.
It should be an absolute imperative for those paying higher rates of tax and/or investing larger amounts and/or investing for longer terms.
Good, independent, financial advice will pay for itself many times over in this regard.
It’s easier said than done.
Successful long term investing requires patience and a good deal of holding your nerve. There will be ups and downs but the potential results speak for themselves.
Sounds easy?
Many can’t manage it and miss out on such returns.
With our help as your trusted adviser we can help you stick to the plan.