Worldwide Financial Planning

If we want no movement, no discomfort and no surprises, cash has a role. But if you want long-term growth which gives you buying power over inflation, volatility is simply part of the deal. It is the entry fee and the opportunity.

There is a persistent idea in retirement planning that the sensible way to take income from investments is to live only on the dividends from shares and the interest from bonds, while never touching capital. It sounds prudent - like the sort of thing your grandfather may have nodded at over the newspaper.

I’ve watched people negotiate harder over a used car mat than they do over the charges inside a pension (or investment). It would be funny if it were not so expensive. In investment terms, unnecessary costs are like turning the heating up with broken windows.

I’ve yet to meet an investor who set out to buy high and sell low. But I’ve had plenty of readers here who nearly did exactly that between the irresponsible headlines and sleep. Behaviour, not spreadsheets, is where most investing outcomes are won or lost.

The day the market falls is the day your phone suddenly thinks it's a newsroom. Every headline wants a gasp, and every ‘pundit’ wants you to believe this time is different. My Director of Investment and I know from all our years of this experience - it rarely is.

Most wars hit economies through something far more boring than the dramatic headlines: plumbing. A pipe, a price, and a pause.