Pitfalls of market timing

Don’t become distracted by short-term volatility

Trying to navigate the ups and downs of market returns, investors seem to naturally want to jump in at the lows and cash out at the highs. But no one can predict when those will occur. Fortunately, there are a number of time-tested strategies that may help you deal with market volatility. Two of the most prevalent are: invest for the long term, and maintain realistic performance expectations when it comes to returns.

Pound cost averaging

Instilling a sense of investment discipline

Pound cost averaging is an investing strategy that can help to smooth out the effects of market volatility and reduce your overall risk. Investing at regular intervals can be a good idea to help smooth out the ups and downs of the market.

Investment funds

Influencing your investment choices

There are many reasons to invest through a fund, rather than buying assets on your own. At a basic level, investing in a fund means having a fund manager make investment decisions on behalf of the investor.

Unit trusts and open-ended investment companies

Sharing many traits, but also having important differences

Pooled investment funds are usually large funds built by aggregating relatively small investments from individuals. A professional fund manager (or a team of fund managers) determines which assets to invest in and then purchases accordingly. They are also known as ‘collective investment schemes’.

Investment trusts

Seeking value everywhere

An investment trust is a public company that raises money by selling shares to investors, and then pools that money to buy and sell a wide range of shares and assets. Different investment trusts will have different aims and different mixes of investments.

Individual Savings Accounts

Minimising the amount of tax you pay on your investment returns

Individual Savings Accounts (ISAs) are a ‘tax-efficient wrapper’ enabling you to minimise the amount of tax you pay on your investment returns. Some ISAs give you instant access to your money and can be used to plan your finances for the short term.

Wealth vs health

More than half ignore medical advice and work despite poor health due to financial worries

When you are off work due to an illness or injury, worries about how you are going to pay your bills can make an already stressful situation worse. So much so, that many people are finding themselves in the very difficult position of having to put the need to earn money over their health by continuing to go to work, even when advised not to by a doctor.

Rising cost of living crisis

3 tips to maintain your financial wellbeing

The rising cost of living is one of the most pressing issues facing many families today. The price of food, energy, fuel and other necessities has risen significantly in recent months. This has made it difficult to make ends meet and has put a strain on many household budgets.

Managing the impact to your pension

Just two out of five have planned for inflation in retirement

Retirement planning can be complex at the best of times so it is easy to understand how some people can find it daunting to take into account factors like inflation. The reality is that inflation hurts everyone, but it can be especially harmful to retirees.

Self-employed vulnerable to financial shocks

New research highlights that 81% aren’t seeking financial advice

As more and more people reject the traditional working structure in favour of becoming self-employed, some people could be at risk of financial insecurity as they lose out on employee benefits that offer protection in the present, and financial planning for the future.