At this stage of life, financial decisions can feel more consequential. You may be in your peak earning years, balancing competing demands and thinking more seriously about retirement. With research showing one in three Brits don’t feel they know enough about investing, it’s important to recognise that uncertainty is normal – and shouldn’t hold you back.
Myth vs mindset: timing the market
While the ‘sell in May’ idea is rooted in historical trends, markets don’t follow predictable seasonal patterns. Trying to time entry and exit points often leads to missed opportunities, particularly the market’s strongest days, which can have an outsized impact on long-term returns.
That’s why the principle of time in the market, not timing the market becomes even more relevant as retirement moves closer.
Behaviour matters more than ever
Emotional decision-making, whether it’s pulling back during downturns or taking on too much risk in strong markets, can have a lasting impact. Investor research shows that those without advice are more likely to react to headlines and hold excess cash, while advised investors tend to stay disciplined and focused on long-term outcomes.
At this stage, consistency matters more than ever.
Refining your approach
You may already be investing through pensions or other vehicles, but now is the time to ensure everything is working cohesively.
Key considerations include:
- Clarifying your retirement goals and timelines
- Reviewing asset allocation to ensure it aligns with your risk tolerance
- Maintaining diversification
- Avoiding the temptation to make reactive changes.
Acting your investor age
With fewer working years ahead than behind, your focus may shift from simply building wealth to shaping how that wealth supports your future. Regular reviews and small adjustments can make a significant difference.
The bottom line
Seasonal investing myths shouldn’t derail your strategy. A disciplined, long-term approach – staying invested and focused on your goals – is far more effective than trying to second-guess the market.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.