Financial markets can feel uncertain. The news can seem doom and gloom with political uncertainty and this can lead to poor performance from the stock market. However, this doesn’t necessarily mean you should stop investing. And it shouldn’t put you off starting.
I’ve written this article to help you feel more confident about investing in difficult markets – and to remind you that every step you take for your child’s future is worth celebrating.
This post and its contents do not constitute financial advice. When investing, your capital is at risk. The value of your investments can go up and down.
Invest for the long-term
The most important thing to remember is that you are investing for the long-term. When markets are difficult, it can be easy to panic about short-term losses. But this is only a full loss if you sell your investments and cash out and with Junior Stocks & Shares ISA, money is locked away until your child is 18 and in normal circumstances can’t be withdrawn before then.
As a general guideline, it is common practice to only invest money you won’t need for the next 5–10 years. This means you can more likely withstand short-term market downturns and take advantage of any future upswings. Building a financial foundation for your child is a marathon, not a sprint.
It is why it is so important to have enough in cash to cover emergencies and costs in the next few years so you shouldn’t need to access the money you’ve invested for your child’s future.
Switch off from the news
If you’re finding it hard to keep investing in difficult markets, you may find switching off from the news helpful.
While it’s important to stay informed, the continual cycle of doom and gloom – especially about the economy – can make everything seem worse than it is. If you find yourself getting anxious or uneasy, switching off may be a good option for you. This will allow you to ‘zoom out’ and focus on your long-term goals and the reasons you’re investing for your child in the first place.
Automate your investments
Automating your investments is a tip many seasoned investors swear by. It takes the emotion out of investing and means you put in the same amount of money every month, regardless of what’s going on in the wider world.
Rather than deciding how much to invest each month, you simply set up your bank account to transfer a set amount into investing each month. You may hear this technique referred to as ‘pound cost averaging’. But that makes it sound far more complicated than it really is – it’s simply a way to keep investing at regular intervals.
With Mia, you can set up automatic contributions that fit your family’s budget, and even invite loved ones to join in – making it easier to keep building your child’s future, one month at a time.
Don’t forget about your pension
If you’re still struggling, don’t be hard on yourself. We’re all learning, and difficult economic conditions are hard for everyone, especially if you’re not used to them.
You are also still likely investing – if you have a pension, it will be invested. Even the standard workplace pension is invested in the stock market for the long-term. You just don’t have to do any of the investing yourself! Realising your pension is still being invested may also help you feel more comfortable about your child’s investments.
Celebrate every step
If you’re feeling uncertain, remember: every contribution counts. Whether you’re setting up your first monthly payment or inviting grandparents to join the journey, you’re making a difference. At Mia, we celebrate every milestone with you. Investing for your child isn’t about getting everything perfect – it’s about showing up, staying committed, and focusing on the future you want for your family.
Investing puts your capital at risk. The value of investments can go down as well as up, and you may get back less than you put in. If you’re not sure whether an investment is right for you, it’s best to speak to a qualified financial adviser.
Mia Wealth Limited (Mia Wealth) is an appointed representative of RiskSave Technologies Ltd, which is authorised and regulated by the Financial Conduct Authority (FRN 775330). Mia Wealth is a company registered in England and Wales (No. 15818371). Mia Wealth can be found on the Financial Conduct Authority Financial Services register under FRN 1033918. Our address is Fairbourne Drive, Atterbury Lakes, Milton Keynes, England, MK10 9RG.
