- Last year, investors were less likely to log into AJ Bell investment accounts over a bank holiday than they were on a normal weekday
- Out of all last year’s bank holidays, early May was one of the holidays when people were most likely to log in – but even then, it was 29% less likely than any day in the previous week
- The bank holidays when we’re least likely to log on are Christmas day, followed by Easter Monday and then New Year’s Day
- There are five great reasons to check your investment accounts in your spare time this bank holiday
Sarah Coles, head of personal finance at AJ Bell, comments:
“We’re firmly into bank holiday season now. You’ve done the easy jobs around the house, mowed the lawn to within an inch of its life and even considered cleaning the BBQ. Now is the time to think beyond your four walls and consider the bank holiday maintenance jobs you can do in other areas of your life.
“With so much extra spare time on the day, it’s a brilliant opportunity to log on to your investment account and do some spring cleaning. Unfortunately, people are reluctant to do so: they’re far less likely to log on than on a normal working day. Of course, some will be enjoying exciting and glamorous days off, but if you’re whiling away the hours less usefully, there are five quick jobs you should consider that can significantly improve your financial life.
“The good news is that the bank holiday login gap is much smaller for people who use the app than the website, so if you put downloading your investment app at the top of your to-do list, it will make it simpler to keep an eye on your finances in future.
Bank holiday portfolio maintenance jobs
- Check your investments still meet your needs
“Start with your personal situation and whether any life events have changed your finances, objectives or attitude to risk. You might, for example, have inherited some money and be comfortable taking more risk, or you might have decided to retire earlier, so want to de-risk as retirement approaches.
“It’s not just you that might have changed. For funds and investment trusts, a new fund manager or strategy may not be the right fit for you. When it comes to shares, consider why you first bought in, and whether that reason still stacks up in the current environment.
- Consider whether you need to rebalance your portfolio
“Market moves over time can leave things looking unbalanced. Some funds or shares might do well and make up a larger share of the overall portfolio as a result. In some cases, it can leave you leaning too heavily on a particular fund, region or asset. It’s worth considering whether you’re happy with your current split, or whether the balance you started out with suits your needs better – so you need to rebalance.
- Seek out long-term underperformers
“There are good reasons why active funds can have periods of underperformance – such as when their investment style has fallen out of favour. There can also be short periods when even a great manager has a bad time. These aren’t necessarily reasons to ditch an investment, but if a fund consistently underperforms its peers and there’s no sign of it turning around, you can consider alternative active funds or cheaper trackers.
- Consider your tax position
“At this end of the tax year, it’s a good idea to think about whether you’re making enough use of your ISA and pension allowances. The sooner you do this, the faster the tax protection is in place, which is particularly key now that the capital gains tax and dividend allowances have been slashed and the rates hiked.
- Don’t forget your pension
“It’s a good idea to check you’re on track with your pension on a regular basis – so it’s a decent job for a day of spring cleaning. A pension calculator will show what you’re on track to have by the time you want to retire, and the kind of income you can expect to get out of it in retirement. You can also see how much difference you can make by boosting monthly contributions too. If your retirement plans have changed, and you plan to retire earlier or later, this is particularly vital – so you can make sure your finances match your life plans.”