As an investor, it’s understandable you’ll want two things from your investments, to maximise your returns within your chosen risk profile and reduce the risk of volatility. One of the most effective approaches when it comes to achieving those goals is making regular contributions over the long term.
Remaining invested over the long-term can potentially give your money a chance of growing in value, but remember, with investing, the value of your money can go down as well as up. Investing over the long-term can also help you smooth out short term market bumps.
If you regularly invest, you are also taking advantage of ‘pound cost averaging’, which involves regularly ‘drip feeding’ your contributions, rather than investing a single lump sum.
There’s a lot to be said for investing in this manner from a behavioural perspective – it can be a great financial habit to get into for the long-term.
Cutting out any market noise.
As an investor, it’s likely you’ll hear from time to time the noise of the markets, whether that concerns movements, inflation, or interest rates.
It can be important to remember your long-term investment goal when thinking about short term market fluctuations.
Thinking logically rather than emotionally when it comes to making a decision about your investments will help you see the bigger picture and stay on track to meet your financial goals, especially in times of market volatility.
“It’s about time in the markets, not timing the markets”. This is a phrase you’ll also come across within investing circles. In other words, timing the markets is an incredibly difficult thing to do – mainly because there are so many different variables.
The key is to remember your goal and stick to your long-term plan rather than worrying about the best time to invest.
Investing with impulseSave®.
With the use of technology, you can invest small amounts little and often. This allows you to build up a larger sum over time while getting into the habit of regularly adding to your investments.
With True Potential, you can use impulseSave® to top up a Stocks & Shares ISA, Personal Pension and General Investment Account at the touch of a button, with as little as £1.
Investors just like you have used impulseSave© to regularly top up their investments over time. We’ve seen £789 million* invested through impulseSave® since 2014 – proving small changes can make a big difference.
Setting an impulseSave® reminder.
By setting an impulseSave® reminder from within the True Potential App, we can even remind you to top up your accounts. Simply tell us how much and how often you’d like to invest and we can send you a reminder by either text message or email. All you need to do is reply with ‘yes’, and we’ll make the top up from your chosen bank account – it’s that simple.
Regular investment by direct debit.
You can also turn your top ups into regular contributions by direct debit. By setting up a recurring direct debit, so you can invest regularly, you are potentially giving yourself the best chance of reaching your financial goals.
By automating your investment, you are basically investing on auto pilot. Establishing this habit means you are paying yourself first – putting money towards your future that over time could potentially come back to you with greater value.
If you’re a True Potential client and would like further support with your investments, you can call our Relationship Management team on 0191 500 9164.
They’re available 7am – 8pm weekdays and 8am – 12pm on Saturdays. If you’re not a client, you can call one of our experts on 0191 625 0350 to learn more.
Your capital is at risk, investments can fluctuate in value and you may get back less than you invest. Tax rules can change at any time. This blog is for information only and is not personal financial advice.
*This information was sourced from the True Potential Annual Report 2023
