Its all about time, not timing
Before you act, look back. Then look forward!
As you can see above, the past 38 years (using the longest available data for Standard Life's Managed Fund) has rewarded many investors. Remember, past performance isn't a reliable guide to future performance. The value of all investments can go down as well as up and may be worth less than you paid in.
Remember your long term goals
It's a normal reaction to be concerned when you see the value of your investments fall. However, keeping your emotions in check is important.
- You may be wondering, why not get out while things are bad and just get back in when they're better?
- Trying to time the markets is extremely hard. Even investment professionals struggle to do this.
- Investors who give way to 'concern' and sell during periods of market stress often feel the pain of loss twice. First, when they lock in their losses by panic selling, and secondly when they miss out on the eventual recovery.
- If you're a long term investor, you'll need to get back into the market eventually and the best time for either move isn't at all clear. Recoveries aren't marked by an "all clear" sign.
Focus on what you can control
While you can't control how markets perform, you can control where you're invested. Periods of volatility are a valuable reminder of the importance of diversification, i.e. spreading your money across different types of investments and geographical locations. Diversifying across different investments and countries can help reduce the amount of risk you take and potentially receive more consistent returns, with fewer ups and downs.
Making the right decision
Any significant event, wherever it happens in the world, can affect financial markets. Never underestimate the importance of financial advice. We understand your financial position and your goals. We've worked with you to create your financial plan, know your attitude to risk and understand why markets rise and fall. Before making any decision, we recommend you speak to us.
Want to know more? We are available to discuss your options, and we look forward to hearing from you.
Our job is to help you choose a product and structure that will help you meet your goals.
telephone | 091441188 and/or email | office@nelsonlife.ie
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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.