Consumer advocate Martin Lewis has highlighted the need for Brits to consider investing their money to achieve better returns, stating that the nation tends to be overly cautious when it comes to financial risks. In a recent episode of his ITV show, the Martin Lewis Money Show Live, Lewis emphasized the benefits of investing for beginners, pointing out that traditional savings accounts have not kept pace with inflation, resulting in a loss of value over time.
Lewis, the founder of Moneysavingexpert.com, clarified that his advice was geared towards individuals new to investing, aiming to empower them to make informed decisions about their finances. He stressed the importance of understanding the uncertainties associated with investing and recommended a long-term approach, especially for those in a stable financial position without significant debts.
During the show, Lewis explained the basics of investing in stocks, shares, and bonds, cautioning against investing in individual companies for beginners and advocating for diversified funds to mitigate risk. He also discussed the distinction between active and passive investment funds, illustrating the potential growth of investments over time through various scenarios.
Furthermore, Lewis warned viewers about the risks of falling victim to investment scams and advised caution when considering highly speculative assets like cryptocurrencies, such as Bitcoin. He emphasized the need for careful research and only investing money that individuals can afford to lose.
The episode also highlighted the tax advantages of investing in stocks and shares ISAs, providing viewers with valuable insights into the potential benefits and pitfalls of different investment options.