Experienced Independent Financial Advisors like Enable always explain that most investments are generally for the long term, so the current short-term fluctuations should not worry people too much. People who invest directly into the stock market can log into their account and see how their valuation might have dropped but is it really worth the stress with daily, and weekly fluctuations?
Most people only get an annual update on their investments and keep their money in for many years - either for their retirement or to hand down in inheritance. Looking too often is not necessarily a good thing , "This could lead to some panic. People do not pay so much attention when values go up," says Anna Sofat, of financial services company Addidi.
"They should not risk selling out at a time that is not good for them."
Andrew Gadd, head of research at the independent financial advisers, the Lighthouse Group, says: "People should not be panicked out of the market ."Even if you are about to retire there are things you can do, granted the current situation is probably most acute for those with personal pension funds and on the cusp of retirement. They will be looking to pull money out of the stock market in looking to buy an annuity - a pension income for the rest of their lives. At Enable our experienced IFA’s never think it’s a good time to panic but it is always a good time to talk through your options.
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