Steve Pollard - Mortgage & Financial Services

The Art of Not Checking Your Investments: A Stress-Free Approach to Investing

I recently had a client contact me wanting to discuss the volatility that they are experiencing in the stock market and the effect it is having on their investments. I asked them how they monitored this volatility, and I got the dreaded response.

“I check my investments every day”.

In the world of investing, it's not uncommon for people to obsessively check the performance of their investments, especially in today's age of easily accessible financial information. The allure of minute-by-minute updates, stock quotes, and portfolio tracking apps can be overwhelming.

But I believe that there are far more benefits of not checking your investments regularly and therefore achieving a better investment experience.

Constantly monitoring your investments can lead to emotional stress, particularly when markets experience volatility. The fear of market downturns and the temptation to make impulsive decisions can take a toll on your mental well-being. By not checking your investments as frequently, you can distance yourself from the daily emotional rollercoaster and make more rational decisions.

Checking your investments too frequently can lead to impulsive reactions, such as selling off assets when you experience short-term losses or buying into trending assets without proper research. By taking a step back and not checking your investments regularly, you give yourself the time and perspective needed to make well-informed decisions that align with your long-term financial goals.

Investing should be a long-term endeavour. By not obsessing over the daily fluctuations of your investments, you're more likely to focus on your overarching financial goals and maintain a steady, patient approach. This long-term perspective is crucial for achieving financial success and allowing your investments to grow over time.

Frequent trading and monitoring of investments can lead to higher trading costs, such as commissions and fees. Over time, these costs can eat into your investment returns. By not checking your investments constantly and avoiding unnecessary trading, you can keep more of your money working for you.

Diversification is a cornerstone of successful investing, as it spreads risk across various asset classes. When you're not constantly checking your investments, you're more likely to maintain a diversified portfolio, as you won't be swayed by short-term trends or fluctuations in a single asset class.

Not checking your investments regularly doesn't mean that you are neglecting them; rather, it's about finding a balance that reduces stress, promotes rational decision-making, and aligns with your long-term financial goals. By embracing this approach with a good financial planner, you can work toward building wealth whilst enjoying a more relaxed and less emotionally charged investment experience.

Always said it, is it really worth it ?
Read on, in case you need to !

Inside the Scottish rehab centre treating cryptocurrency addicts: ‘I lost £5,000 in a day’ — inews The currency's volatile nature can make it very appealing to those with addictive dispositions. Castle Craig Rehab received its first crypto patient in 2016 and has now seen over 200

So, I read the Claims updates today from Aviva showing some Stats from 2020. These are particularly relevant during the Covid pandemic & made me think of some of the conversations I have had with numerous clients over the years, so some points of note :

- Im too young, it wont affect me !
Well slide 4 shows that around 10% of all claims for Critical Illness were under 40 years old.
- Insurance companies wiggle out of paying !
Using a Financial Adviser who will walk you through your application process properly, helps. 99.3% of ALL claims paid for death, 92.7% of ALL Critical Illness claims paid
- Despite the death figures we have seen for Covid, it still falls well short of the biggest killers, Cancer & Cardiovascular.
- The slides show some areas which may make you think

Summary -
If you have children, debts or simply someone who relies on you financially, the Stats don't lie. There are many solutions that can help protect YOU and your FAMILY against the unforeseen. Unfortunately, these things happen.
Seek ADVICE

Despite NS&I being the best rates available for cash recently, they have announced huge changes which aren't great news for savers (from 24th Nov 2020) :
-Income Bonds drop from 1.15% to 0.01%
-Direct Saver drop from 1% to 0.15%
-Investment Account drop from 0.8% to 0.01%
-ISA similar
-Premium Bond prize fund drops from 1.4% to 1%
CASH interest rates (including Cash ISA's) looking a poorer long term option, perhaps time to look for alternatives ?
😔

Time to review those National Savings folks !

How the NS&I interest rate changes will affect your savings and investments — inews Thousands of people use its services as a means to save money, whether through premium bonds, ISAs or an investment account - but things are about to change

So hears the thing, I was just going through & clearing old documents out thanks to lockdown (long overdue though).
I came across an old mortgage advice from March 1998 which advised my my mortgage rate was changing to 8.7% !!

So, if you havent looked for a while, or are one of those people who just let things ride, look at your annual mortgage statements and make sure you review what is your biggest purchase 😇

Financial Help announcement, moving into Q2 2021

Sunak's post-furlough plan: At-a-glance The chancellor sets out plans to protect jobs over the winter. Here's what you need to know.

Despite NS&I being the best rates available for cash recently, they have announced huge changes which aren't great news for savers (from 24th Nov) :
-Income Bonds drop from 1.15% to 0.01%
-Direct Saver drop from 1% to 0.15%
-Investment Account drop from 0.8% to 0.01%
-ISA similar
-Premium Bond prize fund drops from 1.4% to 1%

CASH interest rates (including Cash ISA's) looking a poorer long term option, perhaps time to look for alternatives ?
😔

https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

Claim a grant through the coronavirus (COVID-19) Self-employment Income Support Scheme Use this scheme if you're self-employed or a member of a partnership and have lost income due to coronavirus.