When it comes to investing, the horror stories are all too real, so make this a happy Halloween by treating yourself to some solutions to the deadliest investment traps.

1. Not having enough money to retire on

The ultimate fear of all investors, getting to retirement and not having enough money to live on!

This is that scene in a horror film where you wonder how the protagonist got there. The good news is that all you need to do is take some simple steps to get yourself out of the way of the monster!

With investing, avoiding an unfavourable ending could be as straightforward as investing little and often towards your goal and then tracking your performance to make sure you’ll achieve your aim.

You can work out how long you have left until retirement and how much you’ll need to invest each month to hit your goal. That will give you the map you need to get out of the woods and on to the path to safety.

2. Inflation eroding your savings

The effects of inflation on savings is a silent horror that creeps up on you in the dark, you may not even realise you are in the grips of this cash destroying monster.

It’s simple, if inflation is above interest rates, then your Cash is losing value in bank accounts or Cash ISAs. At the time of writing Inflation is at 1.7%, and the best Cash ISA rate is 1.46%meaning prices are going up quicker than your money is growing. Your money buys less than the day you invested it, as the value of your cash has literally gone backwards in the face of inflation.

How do you solve this? Money invested in a Pension or Stocks & Shares ISA has the ability to beat inflation, as money in these accounts grows in line with investment performance rather than a set interest rate.

3. Falling into the savings gap

One of the big pitfalls experienced by people in the UK is falling into the Savings Gap. Our polling shows that an income of £23,000 is needed annually in retirement to live comfortably. However, based on actual savings behaviour, people in the UK are on course to receive an income of just £6,000 per year from their retirement fund.

Avoiding the Savings Gap is as easy as setting and tracking an investment goal. You know you need £23,000 annually in retirement to live on, so work out how much you need to invest each month, and how long you’d need to do this for based on an assumed rate of growth. True Potential’s award-winning technology makes this easy.

4. Bad technology

Technology can transform your investment experience, offering clarity on your investment performance and making it easy top up towards your goal.

With bad technology, you are scrambling in the dark, unable to see how your investment is performing and what your future may look like.

Only by knowing your investment performance can you make informed decisions on when you may reach your goal and what actions you could take to help you get there. The True Potential app gives you a clear account overview, helping you to set goals, track your progress, and top up at anytime with impulseSave®.

5. Not investing at all

The ultimate investing horror is those people who don’t save or invest anything at all. Our latest Savings Gap report highlighted that 30% of people saved nothing for retirement in the period we polled. That’s a scary amount. What will those people live on in retirement? As for many people, the state pension alone won’t be sufficient.

Trick or treat?

So, what’s it going to be, trick or treat? If you want to avoid any investment horrors this Halloween, now is the time to treat yourself to a financial health check. Failing to set and work towards goals could mean you are zombie walking into a personal finance apocalypse.

Little and often investing in a globally diversified Portfolio is a sensible solution, and you can log in today to do more with your money.

With investing, your capital is at risk. Investments can fluctuate in value and you may get back less than you invest. Past performance is not a guide to future performance. Tax rules can change at any time. This blog is not personal financial advice.

[1] https://www.ons.gov.uk/economy/inflationandpriceindices


[2] https://www.moneysavingexpert.com/savings/best-cash-isa/


< Back to Blog