Consumer advocate Martin Lewis has highlighted the need for Brits to consider investing their money to achieve better returns, emphasizing that being overly cautious with finances can be a risk in itself.
During a recent episode of his ITV show, the Martin Lewis Money Show Live, Lewis encouraged beginners to explore the world of investing, pointing out that traditional savings accounts have often failed to keep pace with inflation, resulting in a loss of value over time. He stressed that investing, when done properly, can offer higher growth potential compared to savings.
Addressing those unfamiliar with investing, Lewis aimed to provide guidance rather than push individuals into making investment decisions. He emphasized the importance of understanding the uncertainties involved in investing and making informed choices based on one’s financial situation.
Lewis’s advice applied to anyone, whether they have a small sum or a substantial amount to invest. He emphasized the long-term nature of investing, advising viewers to consider a minimum investment period of three to five years, or even longer, to reap the benefits of growth.
During the show, Lewis explained the basics of stocks, shares, corporate bonds, and government bonds, highlighting the concept of ownership and potential returns associated with each type of investment. He cautioned against investing in individual companies for beginners, recommending diversified funds for reduced risk exposure.
The discussion also covered the differences between active and passive funds, with Lewis presenting a comparison of investment outcomes over a ten-year period. He showcased the potential growth of investments in funds tracking different indexes, illustrating the advantages of investing in assets like the FTSE 250 or the US S&P 500.
While underscoring the tax benefits of stocks and shares ISAs, Lewis issued warnings about the risks of falling victim to investment scams and the volatility of cryptocurrencies like Bitcoin. He advised caution and emphasized the speculative nature of such investments, urging individuals to only invest what they can afford to lose.
Overall, the show aimed to educate viewers on the benefits and risks of investing, empowering them to make informed financial decisions for their future.