Tuesday, 3 March 2015

Being savvy with your savings

In the past saving and investing was relatively simple. There were limited pots you could put your money into, and generally people worked with office-based bankers and brokers.

Times have changed and I know from friends and relatives that it can be hard to get much return on even a large sum of money with interest rates being so low. And a bewildering number of types of account, savings and investment opportunities can leave even savvy savers feeling confused.

Luckily in this internet-led world we live in you don't have to look far to find  experts offering to help, but of course because of the nature of doing business online these experts are faceless so it's very important to make sure the website you are dealing with abides and is safeguarded by your country's laws.

One such site, Nutmeg is regulated by the FCA (Financial Conduct Authority) and is endorsed by the British Government. It is Britain's first online discretionary investment management company according to former stockbroker Nick Hungerford who said:"I left my job as a stockbroker to start Nutmeg because I was frustrated by the exclusivity and lack of transparency in the investment world — and I knew I was not the only one."

So how does Nutmeg work? There's an explanation on the website which states:"Based on your information, we build and manage a portfolio for you, diversifying your investments to avoid putting all your eggs in one basket. Our experienced investment team monitors your portfolio, adjusting the asset allocation appropriately and rebalancing every month — at no extra cost.
In this way, we aim to produce our best return, at low cost, for the risk level you choose. "
Basically you tell them about your financial situation, how much you want to invest, your timeframe and your attitude to risk based on a sliding scale from 1-10 with 10 being the riskiest.
You can apparently start with as little as £1,000 per fund (plus minimum monthly contributions of £50 for portfolios below £5,000) and set up as many funds as you like. Maybe you want one to invest for your children's future  and another to save for a new home. Each can have  their own timeframe and risk rating.
You can open a Nutmeg ISA, start a  Nutmeg personal pension (min investment £5,000) and transfer your ISAs and personal pension pots from other providers.
There are fees of course but Nutmeg claims their fee structure is very simple - you pay between 0.3% and 1% depending on how much you invest. They claim this is offering expert portfolio management for the price of doing it yourself.
Checking reviews of the service online it seemed most people were happy with Nutmeg. Of course  before investing you should do your homework carefully and don't just rely on the opinion of complete strangers (like me!).
Having said that, if you are looking to invest, now or in the future, why not have a look at what Nutmeg has to offer. It's certainly a well-laid out, clearly written and easily navigable site which explains financial options in ways even I can understand.

Disclaimer: This is a sponsored post

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