Article written on us in the local Milton Keynes OneMK newspaper – April 2016
7 simple steps to guide you and keep your nerve when the markets start to give you the jitters
1. Remember what you invested for initially.
The biggest reason to invest is to get a better return than you would get from leaving your money in the building society or worse still spend it!
You most likely also invested for the long term. Over the last 20 years the FTSE All-Share index rose by 361% or 7.94% a year. But here’s the really interesting part. If you lost your nerve and pulled out and only missed the best 20 days, your gain would only be 60.8% or 2.4% a year.
Although this is past performance and cannot be relied on to predict the future, it is an indication of what the stock markets can do.
It would be foolish not to review your Pension in 2016. Especially if you are within 20 years of using your pension funds. When you save into a pension it’s important to think about where your money is invested and to review your investments regularly.
Lifetime ISA was one of the announcements in the Budget 2016 today, what does it mean for the next generation explained below:
Save up to £4,000 each year, and receive a government bonus of 25% – that’s a bonus of up to £1,000 a year. You can use some or all of the money to buy your first home, or keep it until you’re 60 – it’s up to you.
Do you and your spouse have value clarity? Do you know where you are going, why and how you will get there? Can you point out where you are on the map and how close you are to the destination?