"Most of our so-called reasoning consists in finding arguments for going on believing as we already do."
James Harvey Robinson (1863 – 1936)
How much to save? Four short words make the question, but the answer could fill volumes. “Figure out how much you will need in retirement and save enough to provide it” is an elegant solution during a working life, but in practice it’s very difficult to effect. Even if you do come up with a plan, it still requires the conviction and determination to execute it.
After working out how much to save you need to decide where to invest, which should be a perfectly rational decision. Unfortunately savers consistently make a string of irrational decisions which can hammer the value of their retirement funds. Here are a few pitfalls and how to avoid them;
There are solutions. Getting objective professional advice is the best way to avoid these pitfalls and many employers, including those that Courtiers looks after, offer expert guidance on retirement planning through employee retirement counselling programmes.
As illustrated, investment and retirement planning are not that easy. The field of Behavioural Finance has discovered many examples of our irrational decision making, especially with regards to money and while this article covers some, there are many more and a good adviser can help you realise the pitfalls, avoid them and discover the right choices. The first step is to make the call.
Tuhin Ahmed BA (Hons), APFS, IMC, CertPMI
Chartered Financial Planner
Note: We do not endorse nor accept responsibility for the content of any website not operated by Courtiers which you may visit by following a link from this article.
Warning – the views expressed by Courtiers in this summary and any video and video transcripts, are reached from our own research. Courtiers cannot accept responsibility for any decisions taken as a result of reading this document, watching the featured video or reading the video transcript and investors are recommended to take independent professional advice before effecting transactions. The price of stocks, shares and funds, and the income from them, may fall as well as rise. Past performance is not necessarily a guide to future returns.
We do not endorse nor accept responsibility for the content of any website not operated by Courtiers which you may visit by following a link from this article.