Consumer advocate Martin Lewis highlighted that British individuals tend to avoid risks and encouraged them to consider investing to maximize their financial resources. In a recent episode of his ITV show, the Martin Lewis Money Show Live, Lewis emphasized the importance of investing for beginners, pointing out that traditional savings may not yield significant returns over time due to inflation. He stressed that investing often outperforms saving, especially for long-term financial growth.
Lewis, the founder of Moneysavingexpert.com, aimed to educate those new to investing, empowering them to make informed decisions about their finances. Regardless of the amount available for investment, Lewis emphasized the need for careful consideration and understanding of the uncertainties involved in investing. He advised that individuals should only consider investing for the long term after securing their financial stability and settling any outstanding debts.
During the show, Lewis provided a basic overview of stocks, shares, corporate bonds, and government bonds, explaining how each investment option works. He discouraged beginners from investing in individual companies and recommended diversified funds to mitigate risk. The discussion also covered the distinction between active and passive funds, with Lewis presenting a comparison of investment returns over a ten-year period to illustrate the potential benefits of investing in funds that track specific indexes.
Furthermore, Lewis highlighted the tax advantages of investing in stocks and shares ISAs while cautioning viewers about the risks associated with investment scams and speculative assets like cryptocurrencies. He warned against falling victim to fraudulent schemes and emphasized the importance of only investing in cryptocurrencies with money that individuals can afford to lose.