Cash is the cornerstone of all businesses and all individuals. Without cash, the goals and aspirations of all businesses and individuals would wither away and eventually die. This is why people should understand how to manage cash to protect it and to maximise its value, and why it should be the cornerstone of all financial planning.
It is also the cornerstone of a lot of services offered by a Solicitor, by a Financial Adviser, and also by an Accountant.
However, the effective management of cash has never been part of the services or advice offered by these professionals – mainly because the right tools to do so have not been available.
"Cash has an undeserved poor reputation. It is considered to be a short term asset that has poor long term value which is easily eroded by inflation"
The reality is, if you take a pro-active stance on cash, and help people, and businesses, to manage it effectively, it is actually possible, and highly likely, that the value of cash can beat inflation.
A new risk to cash was exposed in the global financial crisis. In this crisis it became clear that cash can be lost when a financial institution collapses, in exactly the same way as cash can be lost when a retailer, that holds some of our money, collapses.
Most people, and businesses, are still not aware of:
The benefit of the Financial Services Compensation Scheme (FSCS)
Whether or not they qualify for the benefit of the FSCS
What kind of FSCS licence, and therefore protection, their bank or building society holds
How much of their money if protected by the FSCS
"Cash is at risk if it is not managed"
"If cash is not managed it will lose value and it capital may be exposed to being lost if the bank or building society collapses"
What can Solicitors do:
Check how much their clients hold on deposit by asking them
Check to see if they are protected by the FSCS by using our FSCS Tool Check
Check to see how much interest they are earning on their cash by asking them
Check to see how much they could be earning on their cash by using our Cash Value Calculator
Understanding the value of cash is even more important when a solicitor is the custodian on the money; in the form of being a Trustee or acting as a Deputy of the Court in personal injury cases.
Not understanding the value of cash will either result in cash not achieving the value and protection it requires, or it could result in a client's money being exposed to unnecessary risk.
The only way to makew sure neither of these things happen is to forge a relationship with a Financial Adviser that understands the importance and significance of cash.
Contact one of our member Financial Advisers, from our Financial Adviser Register, if you want help to create the best solution for your clients to achieve the value and protection they should be receiving from their cash.
"Stand aside from the competition by helping your clients" maximise the value of their cash"