However, they are reasons not to buy for any online, DIY investor. No-one would buy a pension based on these illustrations.
This does not help anyone, unless you force the banks to illustrate their cash deposit rates after the deduction of inflation – they all make a loss in true terms.
That would be truly useful, and would highlight to all customers the danger of cash. It would also kill the phrases ‘high or great rates’, as they are all guaranteed loss accounts over the medium and long-term. People need to be told this.
Perhaps we could also design a method to illustrate net returns for buy-to-let investment, net of solicitors, stamp duty, mortgage and remortgage costs, arrangement fees, repairs, insurance, CGT and income tax.
Perhaps we could succeed in putting everyone off investments of any type.
Paul Scott
Senior financial adviser
Scott Financial
Hartley Wintney, Hampshire
