Investment discipline can be difficult. Despite best intentions many investors chase performance and react emotionally to market swings. Trying to adapt to changing market conditions and altering investment holdings is speculating and often leads to increased costs and greater losses. History indicates that lack of discipline is rarely in a clients’ best long-term interests. As Chartered Financial Planners we help our clients adhere to some simple rules for disciplined investing:
- Have a medium to long-term investment philosophy.
- Form a prudent asset allocation based on this philosophy.
- Select low-cost funds to represent asset classes in the allocation.
- Maintain this portfolio through all market conditions.
- Don’t change the asset allocation due to recent market activity.
- Don’t put off making new investments while waiting for market clarity.
Keep in mind that political and economic uncertainty are constant and downturns in financial markets happen frequently. Setbacks have historically been followed by recoveries. It is key to keep perspective, as downturns are normal and usual short lived.
At The Financial Planning Group our clients have a low-cost investment plan tailored to their goals and personal financial circumstances, globally diversified with exposure to different areas of the markets, which match their tolerance for risk to the risk in their portfolios. They are ready for the normal ups and downs of the market.
If you would like to arrange a pension or investment consultation, please call Tim Norris or Alan Clifton on 0800 731 7614 and we would be delighted to arrange a meeting at our offices in the heart of Teddington.