Consumer advocate Martin Lewis has highlighted the importance of considering investments to maximize financial growth, stating that Brits tend to shy away from risks. During a recent episode of his ITV show, the Martin Lewis Money Show Live, Lewis emphasized the benefits of investing over traditional savings, especially for long-term financial goals.
Lewis, the founder of Moneysavingexpert.com, aimed to educate beginners on the fundamentals of investing, stressing the need for individuals to make informed decisions regarding their finances. He underlined the fact that investing is inherently uncertain and requires a long-term commitment, advising viewers to approach it cautiously, particularly when financially secure and free from significant debts.
The show also featured insights from James McManus, the chief investment officer at JP Morgan Personal Investing, who recommended considering investments over a minimum period of three to five years, or even up to three decades for optimal returns. Lewis provided a basic explanation of stocks, shares, and bonds, outlining the potential benefits and risks associated with each investment type.
Moreover, Lewis discouraged beginners from investing in individual stocks, advocating for diversified investment options like funds to mitigate risks. He elucidated the difference between active and passive funds, illustrating how various investment choices could impact financial growth over time. Lewis further demonstrated the substantial growth potential of investing in funds compared to traditional savings accounts, emphasizing the tax advantages of stocks and shares ISAs.
Despite the potential rewards of investing, Lewis cautioned viewers about the prevalence of investment scams and the speculative nature of cryptocurrencies like Bitcoin. He urged individuals to exercise caution and only invest money they can afford to lose in such high-risk assets.