Tips for not obsessively checking investments

winkowinko

2 weeks ago I took the plunge and converted the vast majority (80%) of my Cash ISA savings into a S&S ISA. The total sum is close to 6 figures.

I'm invested mainly in a 80/20 fund and have done my research on volatility, so I know what to expect if there's a crash.

I'm in this for the long haul and don't foresee any need to access the funds for the next 20 years. I still have a healthy emergency fund in an easy access cash ISA, so the plan was essentially a 'set-and-forget' approach. The problem is that two weeks in, I can't forget. I'm checking balances daily. Not because of fear, but more out of curiosity. 

Does anyone have any tips on not checking their balance so often, besides a bit more self-discipline? How often do others check on their set-and-forget investments?

Dazed_and_C0nfused

winkowinko said:

2 weeks ago I took the plunge and converted the vast majority (80%) of my Cash ISA savings into a S&S ISA. The total sum is close to 6 figures.

I'm invested mainly in a 80/20 fund and have done my research on volatility, so I know what to expect if there's a crash.

I'm in this for the long haul and don't foresee any need to access the funds for the next 20 years. I still have a healthy emergency fund in an easy access cash ISA, so the plan was essentially a 'set-and-forget' approach. The problem is that two weeks in, I can't forget. I'm checking balances daily. Not because of fear, but more out of curiosity. 

Does anyone have any tips on not checking their balance so often, besides a bit more self-discipline? How often do others check on their set-and-forget investments?

I suspect you will get a wide range of responses but I started off on 6 monthly but then changed to every 4 months.

For absolutely no other reason than 6 months just seemed too long a wait!

masonic

The novelty should wear off over time. It may help you to set a specific time to check your portfolio and gradually reduce the frequency. It's not a problem in and of itself if you are not fretting about what you see.

Do you have a smartphone app? Perhaps ditch it if you can. Set up 2FA and generally make it more of a burden to access your account.

NoMoneyNoWorries

I check my finances twice a day -  seems a bit excessive but I keep a spreadsheet  and track net worth as well as I am now semi retired (but not yet of pension age)

poseidon1

You have elected for a set and forget single  tracker fund, so hopefully the novelty of having taken this significant plunge into the equity and bond markets will eventually wear off, and reviewing once a quarter will hopefully prove sufficient in the fullness time

For those ( fewer) of us who have elected to invest in a portfolio of actively managed funds, investment trusts and individual stocks and shares, we have in effect appointed ourselves as active investment managers, so 'set and forget' is not an option.

I review my Sipp every couple of weeks or so, and since all investments are income producing, and have to decide where to reinvest the income which arises monthly, quarterly and half yearly.  Not an onerous chore since now having long retired, its my only job.

booneruk

winkowinko said:

Does anyone have any tips on not checking their balance so often, besides a bit more self-discipline? How often do others check on their set-and-forget investments?

It sounds like your head is in the right place. If I was to give any advice, perhaps it would be to give it time and absorb more information (Damien Talks Money and PensionCraft on Youtube are excellent)

I think over checking is a newbie thing, I was the same, twas ~2017 when I started my stocks and shares investing. Back then I made the rather newbie mistake of thinking I could pick individual stocks and went on a bit of a loss maker for a few years. I was constantly checking, trying to think up the next move.

I'm very relaxed these days. Any dips in the market are chances to throw fresh money in and buy at a discount, which will all pay off in the end.  I use Google Finance to list out most of my portfolio, I will look once or twice a day but it's just to see what the general market's doing rather than dragging me into thinking about losses, making moves etc. I'll have a coffee in the morning and check the news, and the markets. 

InvesterJones

Have a fun portfolio somewhere else to keep your attention

Baldytyke88

I check the shares in my SIPP daily, I know that I am obsessive and I may do something about it.

I cannot imagine there is much joy in checking an 80/20 fund daily.

booneruk

InvesterJones said:

Have a fun portfolio somewhere else to keep your attention

I do this! However rather than individual stocks (in the main), I pick thematic ETFs or Investment Trusts. Got to love diversification.

ColdIron

Baldytyke88 said:

I check the shares in my SIPP daily, I know that I am obsessive and I may do something about it.

I cannot imagine there is much joy in checking an 80/20 fund daily.

Not as much joy but less temptation to meddle which probably leads to better outcomes

dunstonh

Does anyone have any tips on not checking their balance so often, besides a bit more self-discipline?

Self-discipline and getting a hobby.   Find something else to interest you as checking daily can be fatal to your planning no matter how much you believe 80% equities is acceptable to you.   

Saying you accept a level of risk is one thing.   However, seeing it and your behaviour that follows is another.

Over 2015/16 there was a market crash.   Back then, statements were annual and most people didnt do online access.       For most people, the drop and recovery happened between statements, and they didn't see it.  So, didn't worry about something they didn't see.

During periods like the Coronavirus, the credit crunch, or even the dot.com period (nearly 3 negative years in a row), if you check daily you are going to see the whole peak to trough.     Whereas those who check infrequently will likely see a much smaller drop, as they won't observe the peak, and they won't observe the trough.   So, they won't make a bad decision by looking at it too much.

80% market cap and basket of bonds would have been down around 29% in the worst 12 month period but it would have been down around 37% peak to trough.   A loss of 29% is easier to stomach than a loss of 37%.   That difference is enough to send some people over the edge.