Evidence Based Investing in Leicester A Guide for Retirement

What evidence based investing means

Evidence-based investing draws on research into how markets behave. Rather than trying to predict the next winning company or the perfect time to invest, it usually focuses on diversification, keeping costs under control and remaining disciplined over the long term.

Your money is spread across many companies, sectors and regions. This reduces your reliance on any one investment, although it cannot remove the possibility that your portfolio will fall in value.

Our earlier article on fact and fiction in investing explores why compelling investment stories do not always lead to sensible decisions.

Why this approach can suit retirement planning

Before retirement, you may still be adding money to your investments. Once you begin taking an income, a fall in value can be harder to recover from because withdrawals continue while markets are down.

A diversified portfolio cannot guarantee a return or prevent losses. It can, however, reduce the effect of one company or sector performing badly. A clear withdrawal plan and an appropriate amount of accessible cash can also help you avoid making rushed decisions during difficult markets.

Why costs and behaviour matter

Investment charges reduce the amount of return you keep. Even a small difference in annual costs can build over many years, so fees should be clear and proportionate to the service you receive.

Your own behaviour matters too. News headlines can create a strong urge to buy, sell or change course. A plan agreed in calmer conditions gives you something to return to when markets feel unsettled.

You may also find our article on whether fund managers outperform the market useful when considering the value of stock-picking and active management.

How to check whether an adviser is legitimate

Before sharing information or transferring money, check that the individual or firm appears on the Financial Conduct Authority register. Be cautious if anyone promises guaranteed returns, creates pressure to act quickly or contacts you unexpectedly about an investment opportunity.

Investing should support your life

The point of a portfolio is not to create a more exciting statement. It is to help fund the life you have planned.

That could mean providing a reliable income, helping your children or allowing you to spend with greater confidence. Your investment approach should fit those goals and be reviewed when your circumstances change, without reacting to every movement in the market.

This is why investing forms one part of Santorini’s wider financial planning process. We begin with what you want to achieve and then consider how your money can help you get there.

Frequently asked questions

What is evidence based investing?

It is an approach informed by long-term research, often using diversified, lower-cost funds rather than relying on individual stock selection or market timing.

Does evidence based investing protect my money?

No investment approach can remove risk or guarantee returns. Diversification can reduce specific risks, but the value of investments can still fall and you may get back less than you invested.

Is evidence based investing suitable for retirees?

It may form part of a retirement plan, but suitability depends on your goals, income needs, timescale and attitude to risk. Personal advice is needed before making changes.

Should I sell my individual shares?

That depends on your wider portfolio, tax position and reasons for holding them. Review the decision as part of your full financial plan rather than acting on a general rule.

Review whether your investments still fit

If you are approaching retirement or want to understand whether your current investments still support your plans, book a discovery meeting with Santorini Financial Planning.

The value of investments can fall as well as rise. You may get back less than you invested. Past performance is not a reliable indicator of future results.

Author  Matthew Walne, Certified Financial Planner, Chartered Fellow Financial Planning, Chartered Wealth Manager and Registered Life Planner. Managing Director of Santorini Financial Planning, with more than 27 years of experience advising business owners and professionals across Leicestershire and the East Midlands.