Principles for longer term investing

Lessons from history

Many investment experts will suggest that the following lessons from history help us make better decisions with our investments and pension funds during these unprecedented times.

This really is a unique event, one that is developing quickly and having huge consequences both to health and wealth of individuals.

- Stay disciplined

- Volatility is part of the investment journey

- Over the longer term holding 'riskier' assets is rewarded

- Diversification

As an investment advisor 3 recurring questions from our engagement with our clients are;

1. Will the economy recover?

2. What should i be invested in right now?

3. For people who have monies in 'cash', when should I get back in?

There is no such thing as a ‘risk-free’ investment. However, diversification can reduce the inherent risk of investing, importantly helping you to reach your longer-term financial goals. By missing the 10 best days (yes only 10!) in the market between 2003 and 2017, your investment returns would be almost 48% lower. many of the ‘best days’ have occured almost in as many ‘Bear Markets’ as they have occurred in ‘Bull Markets’.

A critical part of investing is working with your professional advisor to understand the fund or product you are investing into, and importantly matching to your longer-term goals (taking account of both your risk preference and capacity to loss at that time).

Want to know more? We are available to discuss your options, and we look forward to hearing from you.

telephone | 091441188 and/or email | office@nelsonlife.ie

RETIREMENT & PENSIONS |  INVESTMENTS | FINANCIAL PLANNING | LIFE INSURANCE

Nelson Life Limited trading as Nelson life is regulated by the Central Bank of Ireland.

WARNING: Past performance is not a reliable guide to future performance. WARNING: The value of your investment may go down as well as up. WARNING: You may lose some or all of the money you invest. WARNING: These funds may be affected by changes in currency exchange rates. WARNING: If you invest into this product you will have access until you retire (Pension Products). WARNING: The above content does not constitute investment advice, as it does not take into account the investment objectives, knowledge and experience of financial situation of any particular person. Prospective investors are advised to make their own assessment of the information contained herein and to obtain professional advice suitable to their own individual circumstances. WARNING: The information contained in this document is based on our understanding of current tax legislation and the current Revenue Commissioners interpretation thereof and is subject to change including retrospectively without notice. This is intended as a general guide only and is not a substitute for professional tax, legal and investment advice.