If you’d been asked a year ago to imagine life in a pandemic, you may have considered the physical threat more readily than the financial threat. We’ve now seen how both are major concerns, demonstrating the importance of thinking about how we manage our money and whether we are financially best prepared for the unexpected.
This doesn’t just mean asking whether you have enough money to take you through more difficult times. It means considering where your funds are placed – asking key questions such as how much of your money is tied up in investment vehicles and how much is more easily accessible. It also means making intelligent decisions about your cash and managing it for best returns and protection.
Cash versus investments
While predictions of a “V-shaped” economic recovery reduce any need to make any impulsive decisions about your finances, it always pays to think strategically. Cash has long been considered a natural safe haven for people to turn to in tough times and the benefits of having our money more easily accessible are clear.
We do not need to go as far as a pandemic for an “emergency cash fund” to prove worthwhile and this is by no means an issue that only affects those with less excess cash. Instead, cash management can play a key role in sensible, strategic financial planning models for high net worth and ultra high net worth individuals with excess cash deposits who want to make their money work harder.
Why cash management?
This is a financial planning solution especially suited to those who are traditionally more cautious, rate-sensitive or those seeking an additional level of stability during tough times with optimum protection under the Financial Services Compensation Scheme (FSCS).
Cash management works to enhance interest income and minimise risk through diversification. By managing your cash resources through a solid platform, with the added assistance of a trusted adviser, you will be able to effectively manage your finances and support your overall planning outcomes.
While overall interest rates are looking gloomy, effective cash management is all about choosing the right platform. This would mean considering such key factors as individual platform charges, interest rates offered and rates of return.
A good platform will also allow you to control exactly how you want your funds deposited and give the option to manage multiple accounts through one portal. It should also allow individuals to spread funds across several providers to minimise risk, obtain the best rates across their portfolio and fulfil short, medium and long-term financial goals.
How we can help
Our experienced wealth management team can introduce our clients to an advanced online cash management service. It has these advantages:
- It offers the opportunity to place money with different banks thereby taking advantage of the FSCS £85,000 limit per bank
- All client money on the platform is held on trust with each individual bank, which means there is no credit exposure to the firm itself for optimum security
- Accounts can be set up in as little as 48 hours with one straightforward application, after which clients can benefit from market leading instant access, term and notice deposit rates as well as exclusive rates when banks are seeking to actively lend
To find out more, please get in touch with us using our enquiry form. We’re looking forward to helping you explore smarter cash management.
The information contained within this communication does not constitute financial advice and is provided for general information purposes only. BKL Wealth Management shall not be liable for any technical, editorial, typographical or other errors or omissions within the content of this communication.
All wealth management advice will be provided by our affiliated FCA registered company BKL Wealth Management Limited.
BKL Wealth Management Limited is an appointed representative of Vintage Wealth Management Limited which is authorised and regulated by the Financial Conduct Authority. FCA number 593380. Company number 08375209.