When you’ve worked hard for every pound that you’ve saved, seeing hundreds or thousands disappear within days is hard to stomach.
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hundreds → work → days
Especially when the cause is something you’ve no control over.
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you → ’ve → control
The pensions and Isas of millions of British savers have been dented this week by the revelation that a middle-aged man thousands of miles away had an affair.
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man → dent → affair
On Monday shares in Nvidia tumbled – by as much as £300 billion at one stage – as the company launched an investigation into its boss Jensen Huang over his affair with a suspected Chinese spy.
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company → tumble → spy
If you’ve never bought shares in Nvidia, you may wonder what its share price and boss’s infidelity has to do with you.
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price → buy → you
But Nvidia is such a behemoth that most of us own a stake.
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most → own → stake
As the second biggest company in the world, Nvidia accounts for around 5% of the value of developed global stock markets
Nvidia has now launched an investigation into boss Jensen Huang's affair with a suspected Chinese spy
As the second biggest company in the world, it alone accounts for around 5 per cent of the value of developed global stock markets.
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it → account → markets
If you hold a global fund, a US or technology one, or are simply paying into a workplace pension – you will have a chunk of your savings in Nvidia.
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you → hold → Nvidia
I checked the value of my investments this morning – not pleasant – now wish I hadn’t.
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I → check → investments
It had already been knocked in recent days by the rollercoaster ride technology stocks have been on a since last week’s US midterm election results.
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stocks → knock → results
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asserted
MONEY → share → article
Against such a turbulent backdrop, the Government’s proposals last week to take the responsibility for investing our savings at retirement out of our hands look remarkably appealing.
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proposals → take → hands
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The idea it put forward is that instead of us each being individually responsible for managing our retirement savings, we’d pool them with others to be invested on our behalf and we’d all get a regular income.
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we → put → income
Announcing the so-called ‘guided retirement’ proposals, pensions minister Torsten Bell said savers would be given the option of taking a stable income for the rest of their lives ‘without having to become investment experts overnight’.
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savers → announce → lives
We’d no longer have to think about stock market volatility, second guess how long we might live for, or risk running out of money.
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we → have → money
Rachel believes learning about money, saving and investing must start in schools
Nvidia shares plummet?
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shares → believe → schools
Let someone else worry about it.
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someone → let → it
For some people, these proposals may offer a neat solution – although for those who want a guaranteed income for life such an option is already available in the form of an annuity.
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option → offer → annuity
But think what will be sacrificed.
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what → think → ?
Those who sign up under the new scheme will lose the flexibility and freedom to manage their retirement savings as they choose.
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they → sign → savings
They won’t be able to take a chunk when they need it, take a little less another year when they don’t.
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they → take → it
And sadly we’ll be playing into the old, bogus narrative that investing is difficult and better left to the experts.
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investing → play → experts
Ten years ago we were handed pension freedoms to do with our pots as we choose.
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we → hand → pots
And what a failure if savers do not feel emboldened and supported to enjoy the freedoms we’ve been granted.
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we → feel → freedoms
How much more empowering it would be if instead of taking away savers’ agency by default we invested in giving everyone confidence to make their own financial decisions.
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we → take → decisions
Learning about money, saving and investing must start in schools.
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Learning → learn → schools
Talking about it should continue throughout a lifetime.
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Talking → talk → lifetime
I’ve started to see the hoody-wearing red squirrel of the Government and industry-led campaign to improve understanding of investing pop up all over billboards and on taxis.
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squirrel → start → taxis
I wish him all the best, but I think it’s going to take more than that.
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it → wish → that
With a bit of confidence, even hair-raising times for financial markets needn’t be daunting.
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times → raise → markets
If you are some years off retirement, you can take the likes of Nvidia and tech stock tumbles in your stride.
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you → take → stride
Hopefully over the long term they’ll look like a blip.
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they → look → blip
And you can rest safe in the knowledge that you’ll be buying at cheaper prices.
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you → rest → prices
With confidence, older savers can stay on course and trust in the portfolios they have built.
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they → stay → portfolios
Pension freedoms will fail if we rely on retirees to become ‘investment experts overnight’, as Torsten Bell put it.
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Bell → fail → it
But they will succeed if we become experts over a lifetime.
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we → succeed → lifetime
Rachel.rickard@dailymail.co.uk
SAVE MONEY, MAKE MONEY
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Rachel.rickard@dailymail.co.uk → save → MONEY
If you take out a product This is Money may earn a commission.
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This → take → commission
These deals are chosen by our editorial team, as we think they are worth highlighting.
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they → choose → team
This does not affect our editorial independence.
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This → affect → independence
…and 1 more, not listed.
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