Most people have disposable income and generally leave this to build in the bank, occasionally doing something with the accumulated capital. This is not the most efficient way of using disposable income. As with capital investment, it is essential to have excess income working hard. Leaving it in the bank, subject to interest rate fluctuations and inflation, does not achieve this goal.
It is vital to use both your excess income and the ability you have to save now. You may not always have that ability. Therefore, it makes great sense to take a decent proportion of this excess income and direct it regularly into a structured savings vehicle.
Some of the most common objectives our clients want to achieve by using a regular savings plan include:
GPI has extensive experience in implementing savings plans, using all the benefits of offshore investing.
Another important feature is that the context for regular savings differs from the initial context of capital investment. With capital, an investor is looking for growth as well as protection in event of market falls. With regular savings, an investor is feeding a smaller amount into the investment each month: in the early years, until a larger capital value has grown, he is happy to follow the market trends. If the market falls, it means that the month’s savings buy more units; if the market rises, their unit value increases.
After a time, the increase in the value of the plan creates a need not only for continued growth but also for the protection of the existing capital while maintaining the exposure of further savings to market fluctuations. Having these savings managed daily is equally essential.
The plans we recommend allow clients to choose the saving amount, the length of time and the preferred payment method: also to move location seamlessly and to select the range of investment funds to suit their personal profile. Eminent and Mithril then monitor the performance of the plan and provide a regular ongoing service.