Are Shares Really the Way Fo Orward When Other Forms of Investment Are Pro Omising so Little ? ; Jeremy Gates Looks at the Nation's Money Issues and Examines Whether Income-Starved Savers Should Dabble Their Cash in Shares

Summary

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THE penny dropped slowly, but painfully, for an army of small savers in 2010: feeding money regularly into a bank or building society account is hardly worth the bother.

With savings rates so far below the level of inflation, a national newspaper stunned its readers last week by telling savers they should either put spare money into equity income funds, which hold shares in secure global companies paying healthy dividends, like GlaxoSmithKline (GSK), Royal Dutch Shell and Vodafone, or blow it.

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Extract

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Are Shares Really the Way Fo Orward When Other Forms of Investment Are Pro Omising so Little ? ; Jeremy Gates Looks at the Nation's Money Issues and Examines Whether Income-Starved Savers Should Dabble Their Cash in Shares

Savers are desperate because since March 2009, when the Government slashed the Bank base rate to 0.5%, its lowest level in more than 300 years, they have been sacrificed to keep the economy afloat.

But is early 2011 the right moment for savers to take on more risk by switching into equities? Is Remember that thousands of small BP investors probably lost more than a fifth of their ...

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