How To Grow Your Stockmarket Assets In The New Year

How To Grow Your Stockmarket Assets In The New Year
Underwater by Andy Deitsch. Why?

If you invest in stockmarket assets inside a SIPP, SSAS, ISA or in cash, find less than an hour over the Christmas break to read the four articles below, and your stockmarket assets could start the New Year on the way up.

Now You Can Profit From These Valuable Stockmarket Insights

Surviving In Turbulent Markets

How To Invest For Accumulation And Decumulation

What To Know About Investment Risk In The Early Years Of Retirement

How the World’s Most Elite Growth Investors Pick Stocks

Surviving In Turbulent Markets

When picking a fund, should you be more defensive or should you have a risk-on approach to volatility?

Despite the heightened political uncertainty stemming from shock events such as Brexit and Donald Trump becoming president in the US, for the past couple of years, investors enjoyed a relatively smooth ride when it came to investing in global markets.

Propelled by the effects of quantitative easing and low interest rates, markets seemingly entered an unusual period of calm in 2017.  The result was investment success for all those adopting a risk-on attitude in their portfolios, with the risky asset classes performing strongly.

But this was brought to an abrupt end at the start of this year, with markets witnessing a number of short, sharp sell-offs in the face of negative headlines regarding possible trade wars, the unwinding of Quantitative Easing and potential interest rate rises around the world.  In short, volatility had once again reared its ugly head and the quandary facing investors is what to do next.

Read more on the stockmarket.

How To Invest For Accumulation And Decumulation

In this article, you’ll discover the following information:

  • The differentiated objectives in accumulation and decumulation investing.
  • To understand and contrast the key risks of investing in accumulation and decumulation.
  • To understand the key variables in analysing and evaluating the potential outcomes of a retirement investment plan.

The theory that underpins retirement investing is to create an asset allocation over time that changes with the shifting objectives over an investor’s lifecycle. 

The investment lifecycle can be broken into three phases: an accumulation phase, a preservation phase, and a decumulation phase.

During the accumulation phase, investors convert a portion of their income into capital based on a 'contribution rate'.  While during the decumulation phase, investors convert a portion of their capital into income based on a 'withdrawal rate'.

Read more on the stockmarket.

What To Know About Investment Risk In The Early Years Of Retirement

In this article, you’ll discover the following information:

  • Learn about the relationship between risk and retirement and how that has changed with pension freedoms.
  • Understand why retirees tend to be risk averse and how this can be overcome.
  • Grasp what the Financial Conduct Authority concluded about risk.

The Financial Conduct Authority's (FCA’s) recent Retirement Outcomes Review Final Report mentions the word ‘risk’ 63 times.

The report talks about longevity risk, the risk of scams and the risk of overspending, but the dominant theme is arguably the risk of over-cautious investors (mainly those without the benefit of advice) losing out by holding too much cash.

The paper sends a strong signal about the need to challenge clients’ inherent caution in later life.

It arguably also sounds another death knell for lifestyling funds that automatically take risk off the table as the investor approaches their retirement date.

Read more on the stockmarket.

How the World’s Most Elite Growth Investors Pick Stocks

Investing can be extremely psychologically demanding.

Not only are you up against the world’s best investors, but you’re also up against yourself.  It’s easy to get caught making irrational decisions based on your own personal blindspots or cognitive biases, and these mistakes can lead to buying when you should sell, and vice versa.

For the above reasons, the most successful investors are often those that have rational and proven systems in place.

Having a method to your madness allows you to have confidence in your decisions, while also taking advantage of the strategies and heuristics that have performed well for the world’s most elite investors.

The infographic below from Investor’s Business Daily details the basics around the discipline of growth investing, including the differences the school has with value investing.  More importantly, it also provides a framework for choosing growth stocks used by elite investors such as William J. O’Neil.

Read more on the stockmarket.

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AJ Bell Is Often The Best Value SIPP For Stockmarket Assets

That's our opinion.  Not just because AJ Bell was the first company to offer an online SIPP.  Nor that it's received many prestigious awards.  And not even because the wife of SIPPclub's Founder has an AJ Bell SIPP.  It's because it's one of the most competitive stockmarket SIPPs on the market. 

Over time, charges can wipe out a huge part of your fund.  We like AJ Bell because there are no set-up costs.  If you hold passive funds, which is our preference, or shares, investment trusts, EFTs, gilts or bonds, you pay one small fixed fee no matter how large your fund.  And when you come to draw your benefits either as occasional drawdown or UFPLS payments, there's a small charge for the whole year no matter how many times you access your money (many SIPP and SSAS providers charge more than this for each payment).  However, you should always compare charges in detail, because AJ Bell could be more expensive than other providers, depending on the type of stockmarket assets you hold.

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