Investing

We have been studying the evidence for decades, so you don't have to.

We will explain everything to you in simple English

Making The Most of Your Money

Investments differ from savings in that they have a level of risk. Risk is another word for volatility or how much it may go up and down. The ultimate aim of investing is to make money but there is the chance that you may lose money. With so many investments out there and with so many commentators expressing a different opinion, how do you know where to invest?

Past performance is no guide of future returns, so, at ARM Associates, we do not even try to predict the future. We follow the evidence, with a good dose of common sense.

We don't try to predict the future.

We build portfolios designed to weather it.

Savings vs. Investing: Understanding the Risk

Savings are for safety; investments are for growth. The difference is Risk.

In the financial world, "Risk" is just another word for how bumpy the ride is.

Higher Risk: The ride is bumpier (prices go up and down more), but over the long term, you generally end up with more money.
Lower Risk: The ride is smoother, but the growth is usually slower.

At ARM Associates, we don't push you into a "one-size-fits-all" risk level. We help you find the balance that allows you to sleep soundly at night while still reaching your financial goals.

Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the full amount of their original investment.

"Being rich is having money; being wealthy is having time."

- Stephen Swid

Baking a Cake

Investing is like baking a cake. You need to gather the right ingredients (investments) and follow the recipe (investment strategy). If you do everything right, you will end up with a delicious cake (financial success). However, if you make a mistake, such as using the wrong ingredients or not following the recipe carefully, your cake may not turn out as well as you hoped. This is why it is important to do your research and choose the right investments for your needs. It is also important to be patient, as it takes time for investments to grow. Just like a cake takes time to bake, it takes time for your wealth to grow. But if you are patient and disciplined, you can achieve your financial goals.

1. Evidence, Not Guesswork

We do not use crystal balls. "Star" fund managers who get lucky one year often fail the next. Instead, we rely on Nobel Prize-winning research (Modern Portfolio Theory). We follow the evidence of what actually works over decades, not what is trending this week.

2. Don't Put All Your Eggs in One Basket

This is the golden rule of investing. By spreading your money across different areas (Diversification), we reduce the danger of any single failure hurting your wealth. We use scientific data to ensure your investments work together to smooth out the journey.

3. It's Not Just What You Make, It's What You Keep

Growth is great, but tax can eat away at your returns. Tax efficiency sits beside everything we do. Whether you are investing for income or growth, we structure your portfolio to ensure you pay the legal minimum in tax, keeping more profit in your pocket.

Beware of scams:

1. "If you’re contacted out of the blue about an investment opportunity that sounds too good to be true, then it probably is. If you’re in any doubt – don’t invest."

2. Check the FCA Register before taking investment advice.

3. Double-check that the person calling you is from the company that they claim to be from by searching online for the company and calling them.

4. For further information check with the FCA at www.fca.org.uk/scamsmart

“It is better to be roughly right than precisely wrong.”

— John Maynard Keynes, father of modern macroeconomics

At ARM Associates, we never take excessive risks with your money.

At ARM Associates, we will never take excessive risks with your money. One of the methods that we use is not to put all of your eggs in one basket. Diversification reduces the risk. We will explain everything in simple English and will be there with you for the downs as well as the ups.

To buy when others are despondently selling and to sell when others are greedily buying, requires the greatest fortitude and pays the greatest reward.

- John Templeton

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