Dominic Browning, Managing Director
Posted by Dom Browning
News, Resources, Insight and Opinion from Browning Financial Planning

Life Boat Drills

Dominic Browning, Managing Director
Posted by Dom Browning

If you have ever been on a cruise, you will be aware that the crew will carry out lifeboat drills either in harbour or shortly after leaving.

They are not expecting anything bad to happen but are letting us know what to do, just in case.

Well, we do the same for our investment clients.

It is natural to panic when your investments rapidly drop in value, as they did in March 2020. But the key is to maintain discipline and resist the urge to sell. It is a credit to you all that only one of you sold at that time. By the way, that client came back a few months later.

Downturns happen on average once every 5 years and this is a normal part of the investment cycle. It is where the wise investor really makes their money as they buy shares in the great companies of the World at fire-sale prices.

It is also where the flapper sells at a huge loss and vows never to "play the Stockmarket" again. But who bought their shares? Why, the wise investor of course.

So the next time that things are looking bad, switch off the NEWS (Negative Events World Service), stop looking incessantly at your portfolio, buy more units if you can and tell yourself "this is meant to happen and I am fine with it".

More News, Insight & Opinion
Will you outlive your retirement pot?

The most important question to be asked is ‘How long will you live?’  Continue

HMRC repaid record £198m on flexible pension withdrawals

A record £198m was repaid on flexible pension withdrawals for the tax year 2023/24, latest HMRC data shows. Continue

Lifetime ISAs - Why basic-rate tax-payers under 40 should consider them.

Lifetime ISAs were created to help people under 40 save for a house deposit. But are they any good as long-term savings if you do NOT buy a house? Continue

Why our fees are competitive

I was recently shown the pricelist of St James's Place, a FTSE100 financial advice firm. I nearly fell off my chair. Continue

Company Pension planning options

We regularly look at the company pension funds of prospective and existing clients. Continue