Every day brings another reason not to invest. Interest rates change, elections approach, markets reach new highs and commentators predict the next crisis. For founders already managing uncertainty within their businesses, this constant stream of information can make personal investing feel exhausting.
This article draws on the discussion between Diarmuid and Gary Fox on the Entrepreneur Experiment podcast on Founder Finance 101: The Simple Money System Founders Actually Need. Check it out at the links below:
Markets Are Rarely Quiet
Many people plan to invest when conditions become more stable. Unfortunately, that moment may never arrive.
Once one concern leaves the headlines, another usually replaces it. Investors move from worrying about inflation to interest rates, elections, global conflict or a possible recession. Uncertainty is not an unusual interruption to investing. It is part of the experience.
Therefore, the relevant question is not whether the world feels calm. It is whether you have a suitable timeframe, an appropriate cash reserve and a clear financial goal.
Headlines Are Not a Financial Plan
News reports focus on what changed today. Your financial plan may need to support goals that are ten, twenty or thirty years away so these timelines do not naturally align.
A dramatic headline may feel urgent, but it may have little relevance to someone investing for long-term financial independence. Reacting to every development can encourage repeated changes. It may also lead investors to sell after a fall or delay investing after markets recover. A financial plan should begin with your life, not the news cycle.
Bad News Commands More Attention
People naturally pay more attention to possible danger. That response once helped humans avoid physical threats. Today, it can make negative financial news feel more significant than gradual economic progress.
Market falls often generate dramatic coverage. By contrast, steady growth over several years attracts far less attention. As a result, investors may develop a distorted view of what is happening. They see every setback but pay less attention to the quieter periods when companies adapt, profits grow and markets recover.
Use Systems Instead of Willpower
Manual investing creates repeated friction. Each month, you must decide:
- Whether to invest
- How much to contribute
- Whether markets look expensive
- Whether you should wait
- Whether recent news changes the plan
That creates several opportunities for fear, distraction or overconfidence to interfere. Automated contributions can reduce this pressure. Once the strategy has been agreed, regular investing becomes part of the wider financial system. Automation does not remove investment risk but it can reduce the behavioural risk of continually postponing action.
Separate Investing From Speculating
Not every financial opportunity serves the same purpose. A diversified pension or long-term investment may support financial independence or retirement. Meanwhile, an investment in an individual business, cryptocurrency or single share may involve much greater uncertainty.
The problem arises when essential goals depend on speculative decisions. A practical approach is to secure the core plan first. Only then should founders consider allocating a limited amount to higher-risk opportunities.
Any speculative investment should be an amount you can afford to lose without damaging your family’s security, retirement plan or business.
Match Risk to Your Goal
Risk cannot be assessed properly without understanding why the money is being invested. Cash may feel safe because its value does not fluctuate each day. However, it may be unsuitable for a long-term goal if inflation reduces its spending power.
Equities can rise and fall sharply. Yet an investor with a long timeframe may be able to accept that volatility in pursuit of long-term growth. A suitable strategy should consider:
- The purpose of the investment
- When the money may be needed
- Your capacity for loss
- Your response to market volatility
- Your other assets and liabilities
- Your need for access to the money
“Low risk” does not automatically mean suitable. Equally, a higher-risk strategy is not appropriate simply because it offers greater potential returns.
Stop Trying to Find the Perfect Moment
Many investors believe they will recognise the ideal moment to invest but attractive investment opportunities often appear when the news feels most uncomfortable. Once confidence returns, markets may already have moved.
Trying to enter at the bottom and sell at the top requires two decisions to be correct. It also assumes the investor will act rationally during highly emotional conditions. A long-term plan removes the need to achieve that level of precision. Instead of attempting to make one perfect decision, investors can make a series of appropriate decisions over time.
Know When Advice Adds Value
Founders routinely delegate legal, tax and operational work. Nevertheless, many believe they should manage every financial decision alone. Financial planning is not about predicting markets, it is about understanding your goals, assessing trade-offs and creating a strategy you can maintain.
Advice can also help founders understand how pensions, personal investments, company cash and future exit plans work together. The value often lies in avoiding costly mistakes rather than identifying a spectacular investment.
Final Thoughts
Good investing rarely requires constant action. Instead, it requires a clear objective, a suitable strategy and the discipline to avoid reacting to every headline. For founders, simplicity can be a strength. A straightforward system creates more time to focus on the business while personal wealth continues to receive attention.
If you would like to build an investment plan based on your goals rather than market noise, book a confidential consultation with Chartered Capital.
The content of this article is for information purposes only and does not constitute a personal recommendation. You should always speak to a financial adviser that is regulated by the Central Bank of Ireland when considering financial advice. Any recommendation made will be based on a full suitability assessment that will include a comprehensive review of your circumstances, needs and objectives. Past Performance Is Not A Guide To Future Returns.
In Their Own Words
