Most investors tend to overestimate their own ability to generate high returns. Successful investors, however, tend to acknowledge their limitations and “biases” (i.e. psychological traits which can lead to errors of judgement). Learning to recognise and manage these biases is key, therefore, when following a long-term investment strategy. Here at WMM, in this article we share five common biases to be mindful of when investing.
What’s the best way to generate a retirement income? Broadly speaking, there are two primary options. You can buy an annuity – a financial product which provides a guaranteed income for life. The other option is income drawdown, which involves keeping your pension invested whilst withdrawing gradually from it to fund your lifestyle.
Looking to put more money back into your pocket? People often think of their monthly budget when trying to increase disposable income, yet improving your tax plan can have equal – if not more – impact. Maximising your yearly “allowances”, in particular, can be a great way to save on tax and potentially increase real investment returns.