"The aspect of DIY investing that is most important to me becomes clear: the ability to choose which risks I take"by Andy Davis / February 16, 2017 / Leave a comment
Published in March 2017 issue of Prospect Magazine
The logic of being a DIY investor is clear: I want to make my own decisions, I have a reasonable sense of my own ability to tolerate risk and I always prefer to put money into investments I have thought through for myself, rather than pay someone else to do the thinking for me.
Well, almost always. Recently, I’ve seen a series of stories about people who have chosen to cash in final salary pensions that provide a guaranteed, inflation-linked income for the rest of their life (and often their spouse’s life as well), in return for a lump sum that they can transfer into a personal pension and draw on as they like. My former colleague Martin Wolf, the Financial Times’s Chief Economics Commentator, announced in January that he had done so, largely because of the sum on offer in exchange for giving up his life-long guaranteed income was so large.