Good behaviours

Have you made a New Year’s Resolution?

Whether you answer ‘yes’ or ‘no’, we suggest you resolve to practise good investment behaviours throughout 2023 and beyond.

This article explains what we mean by good investment behaviours:

1. Concentrate only on things you can control

– The inner circle includes your own thoughts, decisions and actions.

– The middle circle includes the actions and choices of people around you, such as your friends and family or work team.

– The outer circle includes world events, the economy, the traffic, the weather etc.

A while back, we found this interesting graphic by @grassoblog tweeted by @TonyVidler.What I can control

It sparked a debate about whether taxes are indeed under your control. Admittedly, you can’t influence tax rates or PAYE but you can plan to reduce your tax burden – that’s one of the things we help clients to do.

2. Control your media consumption

There’s a lot going on in the world, but we hope the media isn’t troubling you too much.

If you must watch BBC News, I recommend the 6 pm showing as this gives you time to think of more uplifting things afterwards, rather than the 10 pm showing, which could leave you with nightmares.

Watching people rant on panel debates can leave you feeling angry, while laughing at a comedy show raises your mood by releasing happy endorphins. You can’t control the TV schedule but you can choose which programmes to watch – or whether you’d rather go for a walk in nature instead.

3. Invest wisely

If you have any excess cash, put it into the markets when they are down. Think of it like shopping in the January sales.

Remember that a drop is a natural part of the market cycle. It’s temporary. Don’t imagine it’s different this time – it isn’t. Over the long-term, the markets WILL rise again. So don’t panic.

What can you influence to help you live your best possible life?

Appoint a financial planner, that’s what! We discuss what our clients’ dream of and then build them a plan to help move them in the right direction.

In many industries, higher costs equate to a better service or product, but the opposite is true when it comes to investing. What we can control on your behalf is the low cost of funds we recommend because all the evidence shows that is the way to achieve the highest returns.

For more information, please get in touch.

Lance Baron

Certified Financial Planner (CFP) based in East Sussex, UK. We support people in Southeast England with more than £500K to invest by building a financial plan that will help them live the life they want… until age 100