How to invest your pension lump sum

When making decisions about investing your pension pot it really pays to do your research.

Your pension has to last you for your rest of your years, so a risky investment could severely damage your future. Before investing you should definitely speak to a Witham financial advisor in Lincoln. Here are some tips to consider:

1. Be realistic
Investing money isn’t a guaranteed win year in, year out. There will be times in your investment that you lose and times when you win. It’s all about balance. You should always check the market to see how your investment is doing, but don’t check every month expecting to see a big windfall. Investment can take years of nurturing, so be patient.

2. Don’t be greedy
If the pension deal sounds too good to be true, then it usually is. If you can afford the risk, then great, but don’t throw all your money in if you can’t live with the consequences.

3. Spread your money
It’s wise to invest your money across a pool of stakeholders. The wider a portfolio, the lower the risk. Investments don’t always work out the way you wanted it to, and can sometimes be a lottery, so spreading costs eliminates the potential loss of all your money.

*Be aware: you may get back less than you originally paid in because your capital is not guaranteed.