Netflix released, The Tinder Swindler documentary late last year and we were all gripped to learn how fraudster Simon Leviev used a dating app to con women out of millions of dollars. We were surprised to learn that so few of his victims failed to see the holes in his story. They had clearly forgotten that if something seems too good to be true, it often is!
This is good advice for love and equally good advice when it comes to managing your finances. Here are five lessons in romance that you can apply to investing.
Don’t rush into anything
When it comes to investing, don’t rush into anything. Like relationships if you rush into anything, you can get hurt, investing is no different. Making a rash decision with your investments can have very serious consequences. Try to avoid making any impulsive decisions. When you are looking to grow your wealth, it is important to think about things clearly and sensibly.
There will be ups and downs
Investments, like relationships, can have ups and downs. During market shocks such as during the pandemic in 2020, the value of your portfolio might fall but it may also rise again.
We try to remind our clients that the general upwards trend of markets usually negates the effects of any short-term dips. Remember that an investment, like a relationship, is a long-term commitment that usually increases in value over time.
Try to leave the past behind
With investments, past performances are not a reliable indicator of future returns. If a particular sector of the market has seen strong growth before it doesn’t mean it will again.
When we build portfolios for our clients, we make property informed decisions that aren’t purely based on past returns.
If it’s too good to be true, it probably is
Just like when you are in a relationship, trust your instincts – if something seems too good to be true, it probably is. In recent years, there has been a rise in investment scams which is why it is important to stay vigilant. If you want to avoid scams, it’s important to trust your gut instinct when a potential investment seems too good to be true.
Plenty of fish in the sea
If an investment underperforms over a period of several years, it can sometimes be sensible to sell it and walk away. Holding on to a bad investment for too long can turn a small loss into a large one. Just like a bad relationship, you need to know when to cut your losses and try again.
If you would like to discuss your financial wellbeing for the future, we can help. Please get in touch or email us at info@resolvefs.co.uk or call us on 01932 943028.
Please note: Investments carry risks. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
*Last updated 15.02.2024