These folks are often also inflation ignorers.

Now there’s nothing wrong with keeping three to six months of household expenses in an easy-access investment or savings account.

It won’t be paying anything close to what’s needed to offset inflation (real inflation in your household, not what goes into RPI or CPI), but at least the first £85,000 is covered by the Financial Services Compensation Scheme (FSCS) – and I really hope six months of your outgoings don’t exceed that number.

But having said all that, it never ceases to amaze me how much importance people place on something being Financial Conduct Authority ok’d, and or FSCS covered.

Not that there’s anything wrong with either of these, they’re there for a reason, but because in the low interest rate environment we live in – there’s only so much return that can be given to investors if you stick to only these options.

It also means you’ll be ignoring the possibilities of tax-free returns.

You’ll also be ignoring EIS investments – which can dramatically reduce the exposure to loss for higher income earners.

You’ll be saying that asset backed investments with solid security aren’t worth looking at.

You’ll be ignoring business ownership.

It boggles my mind to even think about people ignoring these opportunities, but as with everything you don’t know what you don’t know – and the mainstream media does a great job of telling you what you should be doing.

So feel free to use the FCA register when doing your due diligence, but don’t blindly trust it or ignore other opportunities because of it.

All the best,

Stephen Wallis

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