The perils of trying to time the market

Even the most experienced investors can make costly mistakes

The common adage ‘buy low, sell high’ might seem like a foolproof strategy for maximising investment returns. However, the reality is far more complex than simply trying to predict market fluctuations. Timing the market involves anticipating its highs and lows to buy when prices are at their lowest and sell when they peak.

Pound-cost averaging

Cultivating a habit of disciplined investing, smoothing out market fluctuations and reducing overall risk

There may come a time in your life when you are fortunate enough to come into a large sum of money. This could result from a matured savings or investment plan, the sale of a business or valuable assets like a house or an inheritance.

Investment funds

Influencing your investment choices

Rather than purchasing assets individually, another option is to use the services of an expert professional fund manager who makes informed decisions on your behalf. Investment funds amalgamate capital from numerous investors, granting each participant proportional ownership.

Individual Savings Accounts

Ensuring that your savings and investment returns are minimised for taxation

Individual Savings Accounts, or ISAs, are a protective tax-efficient wrapper, ensuring that your savings and investment returns are minimised for taxation. Depending on your financial planning, you can opt for ISAs that offer instant access to your capital, perfect for short-term goals.

Unit trusts and Open-Ended Investment Companies

Pooled funds that offer various investment strategies to choose from

Investment funds, also called ‘collective investment schemes’, are often large pools of capital created by garnering small investments from many individuals. This fund is then managed by a professional or a team of professionals who decide on the assets to invest in.

Investment trusts

A public limited company that aims to make money by investing in other companies

Investment trusts are public limited company entities listed and traded on the London Stock Exchange. These trusts are required to publish an audited annual report and accounts, and they also operate under a board of directors who oversee the trust’s manager. When you put your money into an investment trust, you essentially buy shares in that company.

Deception of investment scams

Often presented as a persuasive opportunity for financial gain

An insidious kind of fraud, the investment scam, often presents a persuasive opportunity for financial gain, requiring only your monetary contribution. At first glance, these offers may appear entirely legitimate, fooling even the savviest individuals. Yet, in most instances, victims of such scams lose partial or total amounts of their invested capital.

Key traits for successful wealth-building

Developing an investment strategy tailored to your goals

Committing to a financial plan is crucial for building wealth and achieving long-term financial goals. When you have a plan, you are more likely to stay focused on your objectives and take the necessary steps to reach them.

Preserving wealth for future generations

Starting estate planning early and implementing it in stages is desirable

The UK Treasury has been receiving record-breaking Inheritance Tax (IHT) receipts. IHT receipts amounted to approximately £7.09 billion British pounds in 2022/23, compared with £6.05 billion in the previous financial year[1].

Will you make the right decisions around your pension pot?

Why defined contribution pensions are even more appealing for wealth transfer

The announcement of the removal of the Lifetime Allowance (LTA) from the 2024/25 tax year in March’s Spring Budget 2023 has made defined contribution pensions even more appealing for wealth transfer. This benefits individuals over 55 who intend to leave their tax-free lump sum intact with their pension to maximise their benefits.