Doing nothing might sound counter intuitive but all the market data says you should do exactly that when it comes to investing your pension.
What’s more, it’s a widely held secret within the investor community.
But what does doing nothing mean? well it really means let the market work for you through ‘passive’ investing.
Passive investing is simply tracking the market. The opposite is ‘active’ investing.
Active investing attempts to second guess the market by trying to pick out the best assets and time when is the best time to sell and get out. Rarely fund managers pull this off – in fact market data in the US shows that 97% of the time they come off second best.
Sit back and watch your savings grow
The stock market will go up and down over time – that’s a fact. It can have periods of stability and volatility. However, a passively invested portfolio in the long term will grow – so our advice is to ignore any short term movement and let the market work for you.
Don’t forget the cost of investing
Passive investing is also cheaper – this has a big role to play in the performance of your pension. Lower fees means more of your money stays in your portfolio – which is then re-invested and builds up at a higher and faster rate. It all adds up to a better return… for you.
Time to change the way you invest your pension?
It’s possible for you to cut your costs, increase your returns and think less about how your pension is performing. Brite Advisors offer low fee, passive investing for UK pensions. And, you can also choose the level of risk you are comfortable with – allowing you to sit back and look forward.
Find out more about how we invest.