If you have just retired, sold your business, won the lottery, inherited money, just divorced, the investment industry wants you to invest now. Why? It’s in their best interests. If you are approached by a salesperson from UBS, St James Place, Tilney, Brewin, Schroders…in the fact, the list of people selling investments is very long…but they know if they can secure your money, the chances of you changing your mind are low which means they get their fees over many years. It may turn out to be a great decision, but with so many choices, the odds are against you.
Instead, it pays to hold cash, think, then invest.
Anyone who has had a rush of money is confronted with so many problems. It can be life-changing. As such how to invest the money is another complication that most people don’t have the mental energy for. It’s why people delegate it too soon.
In the ‘big picture”, do you need to invest your money next week, next month or even in the next year? Will deferring actually change your life that much? Probably not. It is therefore wise to accept when your life changes with money, be patient, stay in cash, and start thinking.
Therefore the main thing to do is to not make immediate financial decisions when you have received wealth. Do thinking before investing. This is much wiser than investing too soon and regretting it.