Are you really going to lose 9% of your Wealth this Year?

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By Chris Shaw, Senior Partner at Chorus Financial

It has been well publicised, that rates of inflation are critically high at present. In fact, inflation is at the highest point it has been in the last 30 years. The main reasonings for this, are persistent supply chain problems on the recovery of the Covid-19 Pandemic, this has driven the price of goods based on pent up consumer demand.

When, I was a Trainee Financial Adviser, some years ago in the UK, one of my elders in the Bank was a great advocate for pay rises matching the rate of inflation. When I went in for my annual performance review, he would urge me to ask for an inflationary salary increase to keep pace with the way that the cost of living was increasing. These increases were often agreed upon, as inflation was running on average around the 2% mark.  I am not sure how successful I would be in this day and age, walking into such a meeting and asking for a pay rise of 9%, in order for me to sustain my standard of living.

There is worrying data globally regarding inflation, a flash estimate from Spain’s Consumer Price index announced only last month that the current rate of inflation here is 9.8%. This makes for challenging times for the local and global economy, alongside the pressures of a European Land War that has brought huge pricing increases in the Oil & Energy markets.

A tried and tested way, to evade inflation on your wealth has always been investing in the financial markets. This is the exact reason, that when you start contributing to a Pension there is normally an investment vehicle/ fund attached to it. 

Although the markets hold no guarantees of growth, they have overcome some of the fiercest economic obstacles in the past and helped Investors to inflation proof their funds over the long term.

With the current inflationary pressures, your money could be losing its buying power to the tune of nearly 10% this year according to Spain’s National Institute of Statistics.

Although Investment performance isn’t guaranteed, at Chorus Financial we have a whole host of Investment options that can look to aid our clients with beating the extraordinarily high rates of inflation we are currently facing as an economy.

At Chorus Financial, all our Advisers are Qualified to Level 4-European Investment Practitioner Standard with the Spanish EFPA. This means that you can be assured that we are meeting the requirements to trade as a Financial Advisers here in Spain and are fulfilling the correct regulatory requirements.

You can check if a Financial Adviser is registered with the EFPA (Spain) to give Financial Advice at the below website, using the search tool:

https://www.efpa.es/busca-tu-asesor-financiero-certificado/

If you feel you may have been affected by the topics discussed in this article or are considering an investment/Pension Transfer here in Spain, or you would like an existing investment reviewed, contact the Chorus team on +34 965 641 163, email info@chorusfinancial.es or visit www.chorusfinancial.es for more information.

Please be aware that investments are not guaranteed and can fall in value as well as rise and that your capital is at risk.

Our Office Locations:

Chorus Financial – Benijófar

Chorus Financial, Benisol II Federico, Garcia Lorca 92, Local 6, Benijófar, 03178, Alicante

Chorus Financial – Jávea

Carretera del Cap de la Nau Pla 122, Plaza 15, 03730, Javea, Alicante

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