Investing for Income
With interest rates at historically low levels, Investors should consider alternative ways to invest for income.
Since the financial crisis of 2007, interest rates have fallen and remained at low levels, forcing investors looking for income to seek alternative homes for their capital.
The value of money held on deposit has been impacted by inflation, and investing for income has assumed greater importance than ever. St. James's Place offers a range of income solutions investing across a range of asset classes, enabling us to provide a diversified, professionally tailored portfolio.
With interest rates at historic lows, investors should consider alternative sources of income:
- Fixed Interest - corporate bonds and gilts offer the potential for increased income in times of low interest rates
- Equities - whilst in the short-term equities can be volatile, history shows us that they have outperformed all other asset classes over the longer term and offer the potential for capital growth and rising income
- Commercial Property - whilst the commercial property market offers an opportunity to achieve capital growth over the longer term, the primary return for investors is rental income. By securing long leases with financially secure tenants, commercial property offers attractive and sustainable income levels.
Diversification and expert management remains the key to long-term success in challenging markets. The St. James's Place approach gives you first class access to investment expertise and the opportunity to invest across a range of different investment firms, with the peace of mind of knowing that your money is being well looked after.
If you invest in a fund, which holds property, you should note that this can be difficult to sell and we may have to delay acting up on your instructions to cash in the fund. Also, the value of property is generally a matter of a valuer’s opinion rather than fact.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested. The options listed above do not have the security of capital which is characteristic of a deposit with a bank or building society.
Request contact from a St. James's Place Partner to find out more.