Interactive Investor CEO: My top three tips for investing
The boss of Interactive Investor has shared his top three tips for investing in UK and foreign markets.
Richard Wilson, speaking on the latest episode of Morning Wire‘s Boardroom Uncovered podcast, has set out what he thinks all investors should do in order to maximise their returns.
The chief executive was speaking ahead of Chancellor Rachel Reeves delivering her Spring Statement on 26 March.
Interactive Investor is the third investment platform to be featured on Boardroom Uncovered after Robinhood and eToro. Watch those episodes here.
Interactive Investor boss shares investing advice
Richard Wilson said: “The first thing is, in terms of my investment choices, do they match what I need?
“So if you’re starting early, you really want to have a very simple, low cost accumulation with a range of funds which you can select between. Some providers only provide their own funds, which is quite limited.
“You want to make sure that in terms of what you’re putting your investments in, whether it’s an ISA or a SIPP or an investment account that you prioritise your long term savings, and then your shorter term investments so that you can match those to your life stage and your ambition and your risk appetite.
“I think the key thing for the consumer, the UK consumer certainly, is to start as early as possible.
“The eighth wonder of the world is compounding and the earlier you start, the more that you will have in the end.
“I think we’ve got well over 1,000 ISA millionaires, for example. They’re just consistently invested in their ISAs over the long run and that consistent, sensible, behaviour rewards you in the end.”
Also in the latest episode of Boardroom Uncovered, the boss of Interactive Investor said the current tax regime is making the UK markets “just about tradable” and is leading to its “gradual undermining”.
Wilson said his company has seen an increase in more investors trading in foreign markets instead of the UK which he said “is not very good for the long term health of the country”.
The CEO added that he doesn’t blame the current Labour government for the situation he sees as “previous government didn’t solve it either” but traces the issue back to the introduction of transaction tax in the late 1980s and early ’90s.
The chief executive, who also holds the position of chief operating officer at parent company Aberdeen, said the move has “gradually eroded the UK market” as well as undermining it.
Wilson also said Chancellor Rachel Reeves needs to be “quite courageous” and not “allow ideology to get in the way of economics”.