Five Years After Stock Market Melt-down, the Saving-versus-investing Debate Steps up a Gear

LONDON, October 15, 2013 /PRNewswire/ --

Ideas for Investing kick-starts the conversation amongst disenfranchised investors

Five years ago, global equity markets were in a state of crisis. The FTSE-100 was seeing triple digit losses on a regular basis whilst the UK government threw £37bn at the nation's banks to keep them solvent. With share prices tumbling, life savings were ruined for some whilst many retail investors were simply frightened away from equities. However those who sought solace in cash have seen savings further eroded as inflation continues to outstrip interest rates.

Now, just as investors look to get back into the market with many encouraged by the likes of the hugely successful Royal Mail IPO, the global economy again finds itself at the precipice, ready to be tipped over the edge by political grandstanding in Washington. Previously these investors would have sought advice from an IFA, but now they find that the landscape has changed, leaving many disenfranchised as a consequence of the FSA's Retail Distribution Review (RDR).

To overcome this, Ideas for Investing (http://www.ideasforinvesting.com), a comprehensive, impartial and independent resource for all retail investors, has been launched by Centaur to help prospective investors bridge the advice gap. With almost 10,000 unique site visits to the website in the first three weeks of operation, this underlines the challenges facing today's investors.

Although the RDR has delivered against its objective of providing clarity as to just how much consumers pay for their investment advice, it is estimated^[1] that as many as five million investors have now been left wanting. High street banks have all but abandoned the market, whilst IFAs, platforms and even some asset managers are focusing their attention on higher net worth individuals and the most sophisticated investors.

Tomas Carruthers, Executive Director of Ideas for Investing, commented:

"The yawning gap between the rate of inflation and the rate of interest offered by the banks is the real reason why today's savers simply cannot afford to do nothing. As a result, we have taken this opportunity to launch Ideas for Investing to get the debate moving, giving prospective investors the ability to discuss, explore and learn about the options available to them - all in an easy to understand and independent environment. It's therefore no surprise that many in the fund manager community - especially those who want to work with investors of all sizes - have welcomed the move, too."

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1. Deloitte, Bridging the Advice Gap, 2012.

Historically, financial advisers would have explained concepts such as risk, return and the time horizon of investments, proposed investment ideas and then helped execute the purchase. Although some have attempted to fill this gap post-RDR, smaller investors are now struggling to find information like this presented to them in an impartial manner, whilst being confident that there is no hidden agenda.

Ideas for Investing has no transactional capabilities, it is purely an informational service. Content - including a range of investment ideas - is being supplied from respected financial journalists and leading industry figures, making Ideas for Investing a compelling and truly independent information resource for all investors.

Investment accounts and funds will be included purely on their merits as judged by Ideas for Investing and not be dependent on any commercial agreement. These investment accounts and funds can however apply for an extended listing should they wish, although this has no influence on how they are ranked.

About Ideas for Investing

ideasforinvesting.com has been created to help the millions of investors who have been left disenfranchised by The Financial Services Authority's Retail Distribution Review (RDR) to bridge the advice gap. It is an independent and impartial resource to help investors make informed decisions about their money. Supported by Centaur Media plc - a publisher with a long history of providing pertinent and well-informed information to its readers - the site has no ties to a particular bank, money manager or broker and has no vested interest in directing clients towards a specific set of funds.

Ideas for Investing offers a truly open platform, inviting anyone to propose their own 'idea for investing'. With interest rates well below inflation and set to remain this way for some time, the challenge for  today's investor is they cannot afford to leave their savings on deposit if they are hoping to see any real growth.

About Centaur Media

Centaur is a leading UK based business information and media group, providing integrated marketing and information solutions to high value professional and commercial markets.