Half of investors admit to making impulsive, emotional decisions, and many go on to regret it

While investment decisions should be based on facts, many investors find their decisions are sometimes influenced by emotions. Whether you’re excited about an investment opportunity, or worried about market volatility, keeping emotions in check can help you make better investment decisions.

According to research from Barclays, half of investors admit to making impulsive decisions based on their emotions. While these decisions can seem right at the time, 67% of investors said they go on to regret their choice. Worries during short-term market volatility are often associated with making knee-jerk decisions. If you see the value of your investments fall, it’s natural to want to make changes. However, the study found that other emotions play a role in impulsive investment decisions, including:

  • Excitement (34%)
  • Impatience (21%)
  • Fear (16%)

Letting emotions play a significant role in your decisions can mean you make choices that you wouldn’t normally or that don’t fit into your financial plan.

Guide: 5 important lessons that Napoleon can teach you about growing your wealth

In 1793, a vast army of the French First Republic locked horns with a combined force of Royalists and their foreign allies at the port city of Toulon. It was in this battle that a young artillery officer caught the attention of his superiors, demonstrating not only a high level of organisational skill, but also tactical brilliance and the charisma needed to inspire his men.

This officer was, of course, Napoleon Bonaparte, and the Siege of Toulon would be the first major stepping stone in his long and glorious career.

When you’re looking for tips for growing your wealth, Napoleon isn’t the first person you might think of. Yet, his innovative and dynamic style of leadership can teach you many valuable lessons.

Read our latest guide to learn more about Napoleon and why he can teach you the importance of:

  • Having reserves to protect against unexpected shocks
  • Keeping an eye on inflation
  • Understanding your attitude to risk
  • Diversifying your assets
  • Making an informed decision.

Why now is the perfect time to start thinking about the end of the tax year

While it might seem some way off, preparing for the end of the tax year now can help you make the most of allowances. On 5 April 2022, the current tax year

2022 may only have just started, but now is an excellent time to start thinking about the end of the tax year. Planning now can help you make the most of allowances and reduce how much tax you pay.

The 2021/22 tax year will end on 5 April 2022. This date is when many tax-efficient allowances will reset. In some cases, it will be your last opportunity to use them, although which allowances should form part of your financial plan will depend on your circumstances. Among the allowances that will reset on 5 April 2022 are:

  • The ISA allowance, which allows you to save or invest up to £20,000 each tax year tax-efficiently
  • The pension Annual Allowance, which is the amount you can tax-efficiently save into a pension each year
  • The Dividend Allowance, which is the amount you can receive in dividends each tax year before you will need to pay tax
  • The Capital Gains Tax annual exempt amount, which is the amount you can earn in profit when selling certain items before tax is due.

59% of people say the pandemic has made them question their priorities. Has it affected your plans?

For almost two years, the Covid-19 pandemic has had a significant impact on lives around the world. From health concerns to restricting social gatherings, the pandemic may have led you to question plans you’ve previously set out.

According to a survey conducted by Aviva, almost 6 in 10 people agree that the pandemic has made them question what’s important in life. Furthermore, half have said it has changed their priorities. More than half (53%) of adults in the UK have suspended or cancelled a planned life event during the pandemic, such as buying a new home, getting married, or starting a new business.

For some, the pandemic has provided valuable time to think about what is important to them. 4 in 10 say they now feel like they can take more control of their priorities. However, the same proportion said they feel like they have less control than they did before.

£130 million “lost” in retirement income because retirees aren’t shopping around

If you have a defined contribution (DC) pension, the only way to create a guaranteed income for life is to purchase an annuity. An annuity can create financial security throughout retirement, but research suggests many aren’t getting the income they could be because they’re not shopping around.

When you retire, there are several ways you can access your pension to create an income. An annuity is something you purchase with all or part of your pension from an insurance company. It will then pay a set income, either for life or an agreed number of years. In retirement, a lifetime annuity, which will pay an income for the rest of your life, can help to create certainty.

However, you shouldn’t purchase an annuity from the first insurance company you come across. Insurance companies will offer different annuity rates, and this will affect how much income you will receive.

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