Investment Insights
Investments do rise and do fall in value and we strongly advise that professional advice is taken before investing your money
We find ourselves in an environment that uses the ‘nudge’ theory as a way of getting people to do things, Government departments, schools and even society itself are using this theory to achieve a potentially better outcome.
Put Simply, the ‘nudge’ approach is by definition nudging people into taking action, a good example through various mediums is the obesity problem we currently face and getting people to take action. Not only will people in general live longer by adopting a healthier lifestyle, but the financial impact on the taxation system and the NHS will be better, hence why this mind game is used. When it comes to retirement and saving for your future, the vast amount of the population struggle with this concept, they cannot seem to understand that one’s retirement life can be as long if not longer than their working life, so modest saving into a pension scheme is just not going to cut it. Real action is needed! People need to understand the hard facts and choices, listen, with no money saved when entering retirement, I struggle to figure out what choices or lifestyle you would have – at least ones that are legal! Sit down TODAY, no excuses with a piece of A4 paper and write down what you would like your retirement to be like. If you have no idea, do some research within yourself. My experience is that most people have bland objectives but the more you can picture that dream the more real it becomes and the more likely you are to achieve your dream. Next, write down your net income that arrives in your bank account, if you are married, include both your incomes from all sources and then compile a thorough expenditure list. Trust me, 99% of people do not know what their bills are, and I am one of them, but I at least have a plan and I am delivering against my goals. So, take the lifestyle that you would like, then look at your expenditure and you may be surprised to realise there is not much spare! We often assume our expenditure will reduce in retirement because we are no longer paying the mortgages, school fees, travel to work etc of today, but tomorrow, whilst we may not have those same bills, we will still be spending and with more free time, we will need monies for meals out, holidays, grandchildren etc. So, on your A4 paper you should now have your objective and how much it is going to cost clearly written down. Stick it on the fridge door or some other prominent position so that it reminds you of your goal every day! I believe it is important that your partner is included in your ‘joint’ dream because if you are both engaged then you can work successfully to build a better future and each of you will encourage each other so you have a higher probability of success! Your next step is to work out how to move from where you are today and how to achieve your goal… Dare I say, the more prosperous you are the higher the probability of living longer, look around you and make your own judgement! Here at SM&A we help our clients turn their dreams into reality so if you would like to see how we can help you, please get in touch. 1/8/2019 03:47:31 am
Do you also sometimes feel that people can sometimes be wrong in a pleasant way? We don't need to look very far. The people closest to us are sometimes the ones who can easily be guilty of this. They tend to sell us short. They have a low opinion of us. The beauty in all of this is we get saved from scenarios where they tend to brag a lot about us only to disappoint unsuspecting people who are sold prematurely. I think it's pleasant.
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AuthorSteven is a Fellow of the Personal Finance Society, whom is passionate about investing and getting the most from your money. Archives
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Steven Mufti & Associates Ltd is authorised and regulated by the Financial Conduct Authority.
Financial Services Register Number 607613. Registered in England & Wales, Company number 8664240. Registered Office address: 27 Armitage Court, Ascot, Berkshire, SL5 9TA. Telephone: 01344 623811 Email: advice@smawm.co.uk The guidance and or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted to customers in the UK. The FCA does not regulate taxation advice. The value of your investments may fall as well as rise. Financial Conduct Authority register: https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000NMlk7AAD |
27/6/2019
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