Taking stock of the markets can be worthwhile

DESPITE the current market turbulence, research still shows that, over time, investors will make a better return from the stock market than from cash.

But, unfortunately, many of us are either not aware of this or too nervous to take the risk of our investment going down as well as up.

People are put off stock market investments for a number of reasons, such as lack of knowledge. As a result, the majority prefer bank or building society savings or property investments.

A survey by Riley, part of Royal London, asked more than 2,000 households a range of questions about finances.

When asked where they saved most of their money, 61 per cent stated bank or building society accounts, while 7 per cent said it was in property. Only 3 per cent put most of their money in the stock market, while just 20 per cent said they had any investment at all in stocks and shares.

Unfortunately, the probable impact of the current market turmoil will be to deter more people from getting involved with the stock market.

Nervous individuals could also set up a mock portfolio to see how their investments perform, before committing their real money.

And you only have to remember the queues to withdraw cash from Northern Rock to realise that putting all your money in the bank isn't necessarily the most prudent option.

This is an ideal time for independent financial advisers (IFAs) to try to reassure clients and educate them on the benefits of the stock market.

MANY of us dream of leaving these shores - especially on these dark winter days - to move to sunnier climes.

Along with weather, issues like the cost of living in this country have encouraged more people to think about emigrating.

The latest statistics from the Office of National Statistics (ONS), released this week, revealed 400,000 Brits emigrated last year.

But, this may not be as easy as it seems. And you may find that moving to certain countries may just be too much hassle. A new report by currency specialist HiFX ranks Australia - the most popular country for Brits to escape to - the third most stressful destination.

Despite a laid-back English-speaking culture, Australia has an unfamiliar and complex tax system. It also has a long and uncertain visa application process.

At the other end of the scale, Germany emerged as the least stressful country to move to .

While some may perceive Germans as being a rather formal nation, the country has a lot going for it for people from the UK thinking of making the move. One of the biggest draws is the fact it has easy links back to the UK should people get homesick.

The knowledge you could be back on familiar soil in around two hours rather than the entire day it would take from Australia is bound to be a selling point.

Although I'm not planning a move anywhere, I thought I'd give the HiFX stress calculator a go to find out how troublesome my imaginary move to New York would be.

I scored 47.5 out of 100 on the stress scale and was told I had "made good preparation".

Given the fact I know nobody in the United States and said I would be moving on my own, I thought my score was surprisingly low.

But I think I'll be sticking to Scotland and its dreich days.

And that's despite the weak dollar making this an ideal time to go and spend my hard-earned cash in Macy's.

TALKING as we were of IFAs, regular Smart Money readers will be familiar with our IFA of the Year competition.

The good news is this is being re-launched with new sponsors and even more investment advisers than before. You can read more on this on the opposite page.