Are you scared that your hard earned investment/pension funds are on a slippery slope to disaster? If so you are not alone. Even after being involved in investment markets for more than 35 years I am finding the current situation very uncomfortable, particularly as the bulk of my income now comes from the investments I hold in my pension fund.
It is very tempting to sell, hoping that you have “got out at the right time” and can get back in when markets have stabilised.
Unfortunately, even with all my years of experience, I cannot identify investors who have followed that strategy effectively. For sure some have sold out at what, for a few months or even years, seemed to be a good time. The worry has stopped and they are congratulating themselves on having “got it right”.
However, all the evidence is that their re-investment strategy has not been as successful. When prices are lower and investment confidence has been destroyed it is tempting to “wait and see” before reinvesting, by which time the markets will probably have risen substantially.
I can remember only 4 clients who insisted on selling everything when they saw problems on the horizon. One never reinvested and the other three only reinvested when their confidence had returned which, surprise, surprise, was when the markets had recovered to a level higher than than it was when they sold out.
I am not suggesting this is a time for complacency but provided you are investing for the long term, and do not have short term funds in investments which fluctuate in value both upwards and downwards, I really do think you should you should hold your nerve and stick to your plan. It will not be easy. “Sell everything” may seem the only way out, but you need to be very lucky and very disciplined with your reinvestment process if it is to be the right answer for you.
By all means take a long hard look at your portfolio, check that you have a well thought out and executed plan, are sufficiently diversified, and are not paying higher management fees than are absolutely necessary. If all that looks ok “holding your nerve” seems to be the right answer.
If you would like a second opinion just text me, Richard, on 07770 575122 or message me here and let’s have a conversation. I am not authorised to give personal advice but my coaching, guidance and education services may be just what you need.
Whatever Brexit holds for us I am sure good companies will continue to find ways of making profits. Hold on to your investments and you can share in those profits.
This document and our on going services are not personal advice. We'll give you all the help and guidance you need to make your investment and retirement decisions, but we can't advise you. If you're not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser. Because we are not regulated by the Financial Conduct Authority you will not have access to the Financial Ombudsman Service in respect of any complaints. If you use one of the "no advice" on line services to handle investment transactions they will be Regulated and you will have access to the Ombudsman and The Financial Compensation Scheme in respect of their services. The value of investments/pension plans can fall or rise depending on market performance. The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122