What Does 2012 Have In Store For Savers And Investors?

Savings

- Interest rates will remain low for at least the next 12 months

- Inflationary pressures will ease, however, with interest rates remaining low, cash savings will still be at risk

- Savers will need to be vigilant to ensure their money is working for them and to seek out alternative investment opportunities for long term savings

Investment

- Uncertainty around Europe remains and this will not go away overnight. Therefore we feel that stock markets will remain volatile into the New Year.

- We believe there is opportunity in value stocks - i.e. those Blue Chip companies with good balance sheets paying a good dividend.

- Although there have been a number of plans announced in the Autumn Statement to boost the UK economy over the long term, we believe the UK economy will remain flat in 2012 and therefore those with an appetite for investment risk should seek opportunities in developing countries such as China, India.

- There will be new tax efficient opportunities with the launch of a new tax relief initiative SEIS (Seed Enterprise Investment Scheme) allowing taxpayers to benefit from 50% tax relief

- Greater fluctuations in value of gold with significant falls

- Whilst the Mayans may predict the end of the world on the 21st December 2012 we do not believe it will be that bad but by this time we will hopefully start to see more light at the end of the tunnel

Wealth Management

- Scrapping of 50% income tax

- More people living to 100 than before

- Increasing number of IFAs leaving the industry / consolidation of the market

- More miss-selling scandals from banks