Our Investment Philosophy: Simple, Low-Cost, and Globally Diversified
Navigating Market Ups and Downs with Confidence
Growing your wealth isn’t always a smooth journey. During challenging years—like 2025—it may feel as though the markets are working against you, placing your goals further out of reach.
However, history consistently shows that emotional reactions, such as panic selling, can do more long-term damage than market downturns themselves. These short-term decisions often become obstacles that investors struggle to recover from.
The good news? Markets, even with their inevitable ups and downs, have helped disciplined investors not only reach but exceed their financial goals over time.
To see how staying the course can protect and grow your wealth, watch this insightful video from Vanguard:
Simple, Diversified, Low-Cost
At Planning My Life, we believe that effective investing doesn't have to be complex. Our approach is rooted in simplicity, cost-efficiency, and broad diversification, principles inspired by the Bogleheads investment philosophy. The Boglehead's Guide to Investing is a DIY handbook that espouses the sage investment wisdom of John C. Bogle. This strategy is designed to serve the best interests of the majority of investors, ensuring accessibility and transparency.
A quote by Christopher Woolard CBE, Board trustee of the UK Consumers’ Association, Which? and the former interim chief executive of the FCA, is:
“The overwhelming majority of retail investors are best served by readily understood, well-diversified and low-cost investments, which are already available from a range of providers, but many retail investors don’t choose these.”
This highlights the importance of simplicity, diversification, and cost-effectiveness in investment choices for retail investors.
Core Principles:
Simplicity
We advocate for straightforward investment strategies that are easy to understand and implement. By focusing on uncomplicated solutions, investors can make informed decisions without unnecessary complexity.
Global Diversification
Spreading investments across various asset classes and geographic regions reduces risk and enhances potential returns. A well-diversified portfolio is better positioned to weather market fluctuations.
Low-Cost Investments
Minimising expenses is crucial to maximising returns. We emphasise the importance of selecting investments with low fees, as high costs can erode gains over time. Platforms like those surveyed by Which? Money offer competitive fee structures, making them a viable option for cost-conscious investors.
Auto-Rebalancing Funds
To maintain the desired asset allocation, we recommend funds that automatically rebalance. This ensures that your portfolio remains aligned with your investment goals without the need for constant manual adjustments
Implementing Our Philosophy:
We help our clients to select simple, low-cost, globally diversified, auto-rebalancing funds available from reputable providers. These funds can be accessed through direct-to-consumer platforms that have been recognised for their excellence.
Choosing the Right Platform:
Selecting an appropriate investment platform is vital. Independent surveys, such as those conducted by the Consumer Association's Which? Magazine, provide valuable insights into platform performance and customer satisfaction. For instance, platforms are highlighted as a Which? Recommended Provider, reflecting their strong customer service and value for money.