BROWNING
FINANCIAL PLANNING
01803 60 67 66
E-mail Us
Am I going to be okay? Take Retirement Test
Are my family going to be okay? Take Estate Planning Test
Dominic Browning, Managing Director
Posted by Dominic Browning
05/02/25
News, Resources, Insight and Opinion from Browning Financial Planning

Inflation - a cancer on your Wealth

Dominic Browning, Managing Director
Posted by Dominic Browning
05/02/25

It is commonly believed that when you retire, your number one priority should be the preservation of your capital.

Whilst in principle this sounds fine, in reality it comes at a great cost. Let me tell you why.

If you don't want to lose money in ACTUAL terms, you are limited to saving accounts. The rate of return on savings accounts generally means that in REAL terms, you will lose money over the long term. Year after year your cash will buy you less and less and your reserves will be like a house eaten away by termites.

A typical retirement of a couple in the UK is around thirty years. So if you retired on an income of £20,000 in 1995, you would now need over £53,000 per annum to maintain the purchasing power of your money.

So, your number one priority should NOT be the preservation of your capital, it should be the preservation of your purchasing power.

Only stockmarket-linked investments can do this but too many people shy away from them because of their volatile nature. This is a mistake.

INFLATION IS TO RETIREMENT WHAT CARBON MONOXIDE IS TO YOUR HEALTH.

More News, Insight & Opinion
Flexible ISAs

It is commonplace to search on the internet for the best Cash ISA available. You could be looking for instant access, a fixed term or something else. But providers do not make it very clear whether their product is flexible or not. Continue

Two Big Questions

"Money isn't the most important thing in life, but it's reasonably close to oxygen on the 'got to have it' scale." - Zig Ziglar, motivational speaker. Continue

2-Year Inheritance Tax Scheme

If you give away an asset, you normally have to survive 7 years before the gift is outside your estate for Inheritance Tax (IHT).  Continue

LIFETIME ISAs

We believe that most young people should invest in a lifetime ISA (known as a LISA).  Continue

Diversification versus Asset Allocation

There is a lot of confusion, even amongst financial advisers, about the difference between diversification and asset allocation. Continue

Loan Trusts

A common problem we face is that we want our money to work hard for us, but then we worry that if we do well, the tax man is going to take 40% of it when we die. Continue

More Articles