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Local Life - Wigan - March 2018

Wigan's FREE local lifestyle magazine.

58 Financial Planning

58 Financial Planning Putting the time in Triggers for market volatility can come in many different forms - Donald Trump saying something he shouldn’t, policy uncertainty, earnings reports, geopolitical unrest. I fully understand that market swings can rattle even the most seasoned investors however it is just part and parcel of stock market investing. The best time to invest in recent years was 2009, just after the financial crisis giving a return of 110% by the start of 2017. But investing before the crisis in 2006 was not bad either; the road may have been rougher, but investors still doubled their money*. Instead of being worried by volatility, be prepared. A well-defined investment plan tailored to your goals can help you be ready for the ups and downs of the market, and take advantage of opportunities as they arise. by David K Barton APFS Cert CII(MP), Chartered Financial Planner and Managing Director Market volatility should be a reminder to review your investments regularly and make sure you consider an investment strategy with exposure to different areas of the markets to ensure that you match the overall risk in your portfolio to your personality and goals. Your time horizon, goals, and tolerance for risk are key factors in helping to ensure that you have an investing strategy that works for you. It’s time in the market, not timing the market which creates wealth. Market downturns may be upsetting, but history shows that the stock markets has been able to recover from declines and can still provide investors with positive long-term returns. Take 2015/16 in the U.S. stock market as an example; U.S. stocks experienced sharp drops in August 2015 when China devalued its currency; in January 2016, as oil prices dropped; in June of 2016, after the “Brexit” vote; and in the run up to the 2016 U.S. presidential election. Still, during the 2-year period, the market was up close to 8% cumulatively. Attempting to move in and out of the market can be costly. Studies from independent research firm Morningstar show that the decisions investors make about when to buy and sell funds cause those investors to perform worse than they would have had the investors simply bought and held the same funds. It is impossible to consistently predict when those good and bad days will happen. The adage goes it’s time in the market not timing the market which creates wealth. We’re here to make it as comfortable as possible but the market’s gains are only there for those who can ride out a few bumps on the way. * FTSE UK Private Investor Balanced Index The value of investments can fall as well as rise and you may get back less than you invested

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Local Life - Chorley - March 2018
Local Life - Leigh & District - March 2018
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Local Life - Wigan - January 2018
Local Life - Chorley - January 2018
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Local Life - Leigh & District - January 2018
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Local Life - St Helens - December 2017
Local Life - Chorley - December 2017
Local Life - Leigh & District - December 2017
Local Life - Wigan - December 2017
Local Life - West Lancashire - December 2017
Local Life - St Helens - November 2017
Local Life - Chorley - November 2017
Local Life - Wigan - November 2017
Local Life - Leigh & District - November 2017
Local Life - West Lancashire - November 2017
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Local Life - Chorley - October 2017
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Local Life - Wigan - October 2017
Local Life - West Lancashire - October 2017
Local Life - St Helens - September 2017