Sheffield finance expert Jill Thomas gives advice on what to do with savings 'in times like these'

Jill Thomas believes moving investment monies to cash is probably not the right thing to do in the short term, due to the unpredictable nature of the war in Ukraine - and its impact on global financial markets.

But people should not leave the value of their cash to go backwards in the face of rising inflation and a cost of living crisis.

Jill, managing director of Future Life Wealth Management, has written this analysis for The Star.

At times like these, it can feel like the right thing is to act on emotion, rather than on fact or data. But we need to pause, and consider the bigger picture before acting.

In the short term, the direction of the investment markets will largely be determined by the scale and focus of the sanctions and counter sanctions deployed between the West and Russia, and this in turn may well hinge on how far Russia goes in its invasion.

What is clear is that both sides have a lot to lose, and so they will be keen to maximise their aims, with minimal economic damage.

This is a test of the new leadership in Germany and for Biden's presidency ahead of the mid-term elections in particular.

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With Macron looking to his re-election and Boris Johnson trying to offset his own domestic difficulties, the response may have much to do with domestic politics. Cutting out all oil and gas supplies from Russia would see even higher prices, a policy that would prove to be unpopular. Equally the political leaders will want to look strong.

Trying to trade on any news flow, and the amount of ‘fake’ news over the coming days will be dangerous, given the unpredictable nature of the situation, and with certain scenarios potentially ‘priced in’ already.

That is why moving investment monies to cash is probably not the right thing to do in the short term.

The more immediate concern is energy prices; our business has recently come to the end of a fixed rate term on electricity account, seeing nearly a 60 per cent increase in future costs.

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Inflation was, before the Ukraine conflict an intensifying issue, and the sanctions against Russia will further exacerbate the cost of living crisis.

Cash in your savings and deposit accounts needs to worked as hard as possible. It astounds me the apathy and inertia many people show to this asset class, happy to, in real terms, see the value of this cash eroded.

We need to acknowledge that deposit interest rates will not equal inflation in the short term, however there are many mainstream providers happy to accept individuals' idleness in not seeking the best rates of return, and establishing new accounts and moving money around to access better return.

Where ever possible you should also ensure that cash receives the maximum protection of up to £85,000 per account per FCA licence, and detail can be found www.fscs.org.uk/

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