What’s putting you off investing?

It’s well known that investing your assets can be a successful way of increasing your income and ensuring long term growth of your finances, making it work harder for you. Alex Fletcher, Senior Paraplanner shares his thoughts as to why people are put off from investing.

So why don’t more people invest?

Many people avoid investing as they associate it with fear of losing money rather than focusing on the wide range of benefits that it can provide.

In our experience, these fears develop from the lack of understanding of the world of investing, with confusion around complex terminology being a main issue. A recent study backs this up with 31% of people citing this as the reason they aren’t currently investing.

Although terms and words used when discussing investing are not always understood, they are still common in our media. For example, due to the current economic climate, many current news stories include much talk of investment. We’ve all seen articles, or even had regular news alerts on our phones, over the last year which has updated us on the increasing rates of inflation.

However, as common as that word is now to us, a recent survey states 29% of people don’t actually understand the meaning of the word ‘inflation’.

The problem worsens when you use more specific terminology such as asset class (77%), growth fund (73%) and risk appetite (62%).

With this in mind, it’s clear that the lack of understanding around such terminologies, and the financial jargon involved, is possibly what is deterring people from making the right financial decisions.

Is there a solution?

Allowing information around investing to be more understandable and less intimidating, can encourage more people into making correct financial decisions and help build a better future for their finances.

How we can help

To combat this confusion, it’s important that we educate and get rid of the financial jargon, enabling them to make the correct financial choices. Professional financial advisors such as ourselves can help steer you into the right direction ensuring you are making the right decisions, helping you set goals and suggesting ideal options for you.

Wealth Experts can help to answer all your questions, so you no longer feel intimidated or anxious around the complex terminology. Empowering you to make educated decisions that guarantee you are taking the right steps to get the most out of your money.

If you want to find out more about investing, please get in touch with us at Wealth Experts as we are happy to help.