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Are we looking at this through the right lens?

By 2025, 60% of Britain’s wealth will be in the hands of women, according to research by Schroders. How are providers and advisers preparing for this huge transfer of wealth and is their perception of women as risk adverse investors correct? Today’s investors have access to a wide variety of investing data which is changing their approach to investing their money. So perhaps now is the time to look at this through a different lens.

Is the landscape changing, and if yes, how?

To date as an industry, we have understood the two traditional routes to investing, one of active and one of passive investing. The shift from passive investing to systematic active investing (sai), has been driven by advancements in technology, increased availability of data and information, academic research on market efficiency, and the desire to achieve more consistent and cost-effective investment outcomes. These changes have significantly reshaped the investment landscape and is having a profound impact on how individuals and institutions approach investing.

Let’s take a second to remind ourselves the difference between active and passive investing. Active looks to beat the market or outperform certain standard benchmarks. Often making tactical decisions picking a particular position in time which can be expensive and not always accurate over time. Passive, often described as lower risk, because you’re investing in a mix of asset classes and industries, not an individual stock, and all decision making is effectively taken out of your hands. This usually drives consistent performance at a lower cost.

In my opinion, given all we have learnt about Systematic Active Investing (SAI) and the shift change from passive to active investing, is the evolution of investing to combine the best of both worlds; trusting in the markets and remembering not all securities give the same return.

In summary, combining active and passive investing is a strategic approach that aims to harness the strengths of both methods to create a well-balanced portfolio. It offers diversification, cost efficiency, and the potential for outperformance, while also allowing investors to customize their investments according to their needs and risk tolerance. However, it’s important to carefully consider the specific goals and risks associated with this approach. Which is why it’s important not to apply a one-size fits-all solution to managing your retirement wealth

Decades of research, not gut feelings, or best guesses. Facts, not faith. Overlap what we already know with Evidence Based Investing, rather than looking at short-term market trends or the current climate, it’s an approach rooted in the long-term observation of markets.

Keeping your eye on the prize

Sticking with long-term investing for a minute, it is important to remember that any investment decisions are made in line with any financial plans/ goals already identified. Looking at ways to identify what will happen over the longer term. Can you stress test your current investment solution? We approach our day-to-day lives reading instructions and understanding how to build things, how do people apply the same knowledge transfer when considering investing?

In modern times airline pilots and their co-pilots have a host of technology available to ensure they remain on course, and make corrections where necessary. Passengers are now safer than ever before. Surely the same should apply when it comes to investing.

In this rapidly evolving world of finance and investing, new strategies and concepts can emerge. Staying informed through reliable sources and continuing your financial education is essential.

Retirement planning is an ongoing process. This means you might need to make course corrections along the way, such as reducing your withdrawal rate, or changing your asset allocations. Of course, the higher your success rate is, the less chance the need for this will occur, why not apply the same to your investment approach.

Picking the right lens

From a young age we are taught to put our hand up in class and ask questions if we didn’t understand. So, why do we overcomplicate learning as an adult? Why are certain subjects still taboo?

I recently found myself having to learn all about phonics and sounding out letters in a completely different way to how I was taught. I felt silly putting my hand up to ask a question as it sounded simple, but it wasn’t for me, yet I had to help my son with his homework. The same applies to investing, I work in this industry and still find myself questioning things. Not always understanding and wanting to seek further information. We need to sharpen the education we offer.

For decades, men in the UK have been far more likely to invest, while women have been more likely to put their savings into cash. Why are we not encouraging investing, knowing that high inflation coupled with savings rates isn’t always the best home?

As a female investor I don’t need to hear sentences such as passive, diversification, risk-rated portfolios. I want to understand the building blocks and have more signposting to information and content. Surveys that look that at what information women would like to see.

Individuals are generally more confident if they have facts in front of them. in fact, SAI can enable women to make decisions about their portfolio with greater confidence as based on fact-based decisions, not decisions made by others outside of their control.

Let’s ensure we are all stress testing our plans, speak with your Financial Adviser about how. If you don’t have one, you can find an Adviser by visiting