When financial news makes the front pages of the broadsheets, 99% of the time it is for the wrong reasons. But when headlines state that billions of pounds have been wiped off stockmarkets, it is important to keep a cool head and take the long view, rather than acting on impulse and converting paper losses into real losses.
DIY Investor Toolkit
When it comes to personal finances, most people don’t think much about exchange rates until they are about to go holiday overseas, but there are sound reasons why investors should pay closer attention.
Investors who fail to reinvest their dividends could see their portfolio worth almost half as much over the long-term, according to data from Fidelity.
The analysis showed that investing £100 per month in the FTSE All Share index over the past 30 years and reinvesting all dividends would have produced a portfolio worth £130,140.
There are various tips and tricks investors can use to their advantage to improve the odds of stockmarket success, many of which we have highlighted in our DIY Investor Toolkit series aimed at beginner investors.
As Mark Twain reputedly said: “History doesn’t repeat itself, but it often rhymes”, and when it comes to the stockmarket, there are certain trends and patterns evident in which history is clearly rhyming.
As sure as night follows day, in the weeks following the end of the tax year various financial firms focus their attention on highlighting the benefits of investing your Isa at the start of the new tax year.
Five and a half years ago, I decided to get some “skin in the game” and open my first stocks and shares Isa account.
The next six weeks or so are typically the busiest time of the year for stockbrokers, as investors try to maximise their Isa contributions ahead of the tax year end. For those looking for ideas on funds to invest in, the first decision to make is to whether to choose an active or a passive fund.
As part of “Talk Money Week”, an initiative that aims to get more people talking about their finances as a way of improving money management skills in the UK, we run through 11 key investment terms that investors need to get to grips with.