Oasis, one of the best-selling bands of all time, announced their reunion in August 2024 after a 15-year split and, with that, “Oasis fever” swept the country once again.
To secure tickets for the momentous event, some fans even queued online for upwards of six hours, but were shocked to find that the £135 price had climbed to £355, the BBC reports.
Beyond the headlines, some of Oasis’s songs offer some fascinating financial lessons you can apply to your everyday life.
From investing to retirement planning, continue reading to discover five invaluable lessons from some of Oasis’s most iconic hits.
1. ‘The Importance of Being Idle’ and staying invested
Released on their sixth album, Don’t Believe the Truth, ‘The Importance of Being Idle’ was a relatively later Oasis hit.
Written and sung by Noel Gallagher, the song tells the story of someone embracing a lazy lifestyle. While laziness certainly isn’t a trait to encourage in most aspects of your life, when it comes to your investments, sometimes being “idle” can be beneficial, especially during periods of market volatility.
It’s entirely natural to feel concerned and nervous when significant events, such as the Covid-19 pandemic or the war in Ukraine, cause periods of volatility. As a result, you may think you need to sell your investments and cut any losses.
However, history has shown that staying calm and remaining invested could be the wisest course of action, as some of the market’s best-performing days often follow the worst.
For instance, data from CNBC shows that if you’d invested $10,000 in the S&P 500 between 1 January 2003 and 30 December 2022 and stayed fully invested, your investment could have grown to $64,844 – a 9.8% annual return.
But, if you missed the 30 best-performing days during that period, your investment would only be worth $11,701. Miss the 60 best days, and your investment might have shrunk to $4,205.
By keeping a cool head during periods of volatility and resisting the urge to act impulsively, you could avoid missing those crucial days of recovery that help you achieve your long-term goals.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
2. ‘Live Forever’ and planning for a long retirement
‘Live Forever’ was one of the songs that cemented Oasis’s early success, debuting just before their seminal first album, Definitely Maybe, in 1994.
While the song isn’t exactly about the next phase of your life, it could inspire you to think about longevity and the importance of planning for a considerable retirement.
Life expectancies are rising, and data from FTAdviser shows that the number of centenarians in the UK could reach 29,000 by 2041, a 78% increase from 16,000 in 2021.
Depending on when you decide to stop working, this means you could spend 20, 30, or even 40 years in retirement. Without careful planning, you might run the risk of running out of money and having to compromise on your standard of living.
This is why planning for longevity is essential, especially since your income needs will likely vary throughout retirement.
For instance, in the early years of your retirement, you could spend more of your savings since you’re ticking off items from your bucket list. Then, as you achieve more of your goals, you may start to slow down and spend less as a result.
In the later years of retirement, you may then start facing more health issues that require home renovations or find that you need to stay in a care home, both of which can be expensive.
Drawing unsustainable amounts of wealth from your pension during the early years of your retirement could deplete your funds and leave you vulnerable to shortfalls later down the line. Equally, you could be over-cautious and not live the type of lifestyle you really want, only to realise later that you could have afforded it.
Working with a planner could be a practical way to avoid these scenarios. They can help you develop a strategy that ensures you reach your targets and have a steady stream of income throughout your retirement, no matter how long it lasts.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
3. ‘All Around the World’ and avoiding home bias
Oasis’s ‘All Around the World’ – which was released on 12 January 1998 on their third studio album – became the longest song by duration to reach number one in the charts.
While the song’s title suggests broadening your horizons, it also holds a valuable lesson for investors, namely the importance of diversifying globally.
“Home bias” is the name given to investing primarily in domestic markets since they feel more familiar and “safer”, giving you more of a sense of control over your wealth.
This is more common than you might think. Barclays reveals that despite the fact that the UK only makes up 4% of the global stock market, British investors typically allocate 25% of their portfolio to domestic holdings.
While it’s understandable that you may feel more comfortable investing in your home market, concentrating too much of your wealth in one geographical area could increase your exposure to risk and limit potential growth.
On the other hand, a well-diversified portfolio spreads risk across various regions, sectors, and asset classes, increasing your chances of offsetting losses with gains from elsewhere.
You may even be better positioned to take advantage of opportunities that exist beyond your local market, giving you a better chance of achieving your long-term goals.
4. ‘Little by Little’ and consistent saving
In ‘Little by Little’, a hit from Oasis’s fifth studio album, Heathen Chemistry, it’s believed that the band is reflecting on personal growth, yet the title might also make you think of gradual progress.
When it comes to saving for your future, the principle of “little by little” is incredibly relevant.
Indeed, consistently saving even small amounts can significantly affect the overall value of your pension thanks to the power of compounding interest. Nest provides a fitting example of this.
Imagine two people make monthly contributions to their pension (including employer payments and tax relief) totalling £200 each.
Both people make their contributions for 10 years, adding up to £24,000 each. The only difference is, “person one” made theirs between the ages of 22 and 32 while “person two” made theirs between 32 and 42.
Assuming they both invested and grew their money by 5% each year until they reached the age of 60, person one’s pot would grow to nearly £125,000, while person two’s would only reach around £77,000.
This is thanks to the extra time person one gives their money to grow, showing the power of investing gradually and allowing compound interest to do its work.
5. ‘The Masterplan’ and working with a financial planner
‘The Masterplan’ is a song about destiny and an understanding that life will often unfold in ways that are beyond your control.
It could also reflect the importance of trusting in a financial plan, as many of the same principles apply. For instance, sticking to a long-term financial plan could help guide you through the uncertainties of life, giving you a clear path to achieving your goals.
This is where working with a financial planner comes in. Whether you’re saving for retirement or investing for growth, a planner could help you take a holistic view of your current financial situation, goals, and future aspirations, guiding you to make informed decisions that can help you stay on course.
A planner can do more than just help you manage your wealth; they provide you with the clarity and confidence needed to handle life’s challenges. This is achieved with the help of a personalised, long-term plan that adapts to your circumstances and ensures you’re prepared for whatever life throws your way.
Ultimately, having a professional by your side means you won’t have to navigate life’s uncertainties alone. Their guidance could give you the confidence that you’re following your own “masterplan”, designed to give you some much-needed peace of mind regarding your wealth.
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We could help you devise your “masterplan” that ensures you can consistently work towards your long-term goals.
Please email us at info@investmentsense.co.uk or call 0115 933 8433 to find out more.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.