Is big always best?

Posted on 15 December 2011 by Douglas Chadwick

What percentage and how much should one start to control of your own investments.? This is a frequently asked question by people considering doing just this and using the Saltydog numbers to assist in them taking the first steps for part of their savings portfolio. Well of course this is an impossible question to answer. I mean is the person competent to carry out the task.? What is their attitude to risk.? How wealthy are they and what is their age.? Are they worriers who will no longer be able to sleep at night if they take on this responsibility.? Remember the facts show that many people will and do accept financial losses made on their behalf as long as it is done,monitored and reported back to them by financial advisors. A crazy situation but true.
 
So what is the answer to the question.? Well like so many situations in life I believe that a cautious approach can frequently save future heartbreak.  I believe that soldiers on patrol are taught that it is better to take small steps quickly rather than large steps slowly. This is certainly true if you are starting a new business. Follow this maxim and any mistakes you make are unlikely to be major and should be recoverable. So it should be for you when you decide to start to control some of your savings be it in ISAs or SIPPs. Start with a sensible small amount. Then give yourself time to understand how the numbers are presented and how to make best use of this information. Also you will need time to experience the vagaries of the world stock markets and the levels of noise that the press can make when political and financial events take place. You may lose money as you learn. I hope not,but better to lose or go wrong whilst you learn on a small amount than on a large significant part of your savings. As your confidence and competence grows then you can add to the amount you are controlling.
 
I am reminded of the old saying "Slowly,slowly catch the monkey." Not a bad maxim to follow.