The Next New Shiny Thing Syndrome: Why Good Investments Should Be Boring

In today’s fast-paced financial world, it’s easy to get caught up in the excitement of the latest investment opportunity. Whether it’s cryptocurrencies, zero-fee pensions, or AI-driven platforms, there’s no shortage of shiny new things claiming to revolutionise the way we save and invest.

But as someone who’s spent decades overseeing product review teams in banks—and witnessed countless product failures—I can tell you one uncomfortable truth: the best investment strategies are often the most boring.

People naturally prefer comfortable lies over uncomfortable truths. We all love a shortcut, a promise of extraordinary returns, or the idea that we’re getting something for nothing. But the role of a good generic financial planner is to guide clients past these temptations and help them build grounded, reliable strategies.

While we can’t recommend specific products as generic advisers, we can offer clear frameworks and practical filters to help clients compare features and make well-informed decisions. Our focus is on education—providing knowledge and tools, not advice or recommendations. So, how can you recognise when a new investment opportunity might be more hype than substance? Here are three red flags I’ve learned to look out for when reviewing products over the years:

1. It’s New (And Untested)

New products are exciting, but they’re also risky. Why? Because they lack a proven track record.

In their early years, many products fail to live up to the promises in their glossy brochures. The practical application of the money invested can differ wildly from the original proposition. As a rule, I would never consider listing a new product on a panel until it had demonstrated several years of solid, reliable performance.

The takeaway: If it’s untested, proceed with caution. The risk of failure is real, and there’s no need to rush in.

2. It’s Small (And Illiquid)

When an investment product is small, it comes with its own set of risks. For example:

• Your investment could make up a significant portion of the product’s total funds. If things go wrong, you’re left exposed.
• Liquidity issues could make it hard to get your money back when you need it.
• Costs may be disproportionate to the benefits, which means you’re not getting the value you think you are.

I’ve always avoided products below a certain size for these reasons. A small investment can sometimes punch above its weight, but more often than not, the risk outweighs the reward.

The takeaway: Bigger, established products often provide more security, liquidity, and transparency.

3. It Fails the Sniff Test (Too Good to Be True?)

If something seems too good to be true, it probably is. Products offering rock-bottom costs or extraordinary returns often lack sustainability. They may look appealing now, but what happens in the long term?

A product needs to be profitable enough for the provider to stay in business. If there’s no sustainable profit margin, you have to ask: How long can they keep this up?

The takeaway: Don’t chase unsustainable deals. A good investment will balance affordability with longevity.

The Latest Hype: Zero-Fee SIPPs

Let’s look at a real-world example. Recently, InvestEngine announced the launch of a zero-fee SIPP (Self-Invested Personal Pension). On paper, it sounds incredible: no platform fees, no trading costs, and a promise to save investors hundreds of thousands over decades.

But does it pass our three red flags test?

1. It’s new: This is an untested product with no long-term track record. How sustainable is a zero-fee model?
2. It’s small: InvestEngine’s total assets under management stand at £900m—a relatively small figure in pension terms. What happens if a liquidity issue arises?
3. The sniff test: Zero fees sound too good to be true. If the platform isn’t charging fees, how will it sustain itself in the long run? What’s the catch?

See also an assessment of the financial position of this company in Appendix 1. As someone who has seen many products fail over the years, I would approach this with caution. It may be tempting to jump in, but remember: good investing isn’t about chasing trends—it’s about building sustainable wealth.

Why Boring Is Better

Boring investments might not make headlines, but they work.

They’re steady, reliable, and designed to stand the test of time. They focus on:

• Long-term growth rather than short-term hype
• Proven performance rather than untested promises
• Real value rather than flashy marketing

As financial planners, it’s our job to steer clients away from decisions driven by fear of missing out (FOMO). Instead, we help them focus on what really matters: achieving their goals through informed, grounded strategies.

The Bottom Line

The next new shiny thing will always come along. But before jumping in, take a step back. Ask the right questions. Look for the red flags. And remember that boring investments are often the best investments.

Because in the end, it’s not about excitement. It’s about peace of mind, stability, and creating a future you can depend on.

If you need guidance on building a sustainable, long-term plan that works for you, let’s talk. At the Academy of Life Planning, we’re here to help you focus on what really matters—and leave the hype behind.

What advice would we give you for choosing a platform provider?

We would refer you to a publicly available independent survey. We recommend the Consumer Association’s Which Money.

This survey ranks the best investment platforms for stocks and shares ISAs based on customer satisfaction. It’s designed to help investors like you make informed decisions by comparing platforms on key criteria such as customer scores, service quality, and ease of use.

Here’s what the ranking highlights:

1. Top Performers: Platforms like Vanguard, Monzo, and AJ Bell are highly rated, receiving strong customer scores of over 70%, earning “Recommended Provider” status.
2. Comparison Features: You’ll find information on customer scores, links to provider websites, and service ratings. This helps you quickly identify which platform aligns with your needs.
3. Lower Scores: Platforms like Barclays Smart Investor and Bestinvest score lower, reflecting possible areas of improvement in their services.

Why This Matters to You

Choosing the right investment platform can make a real difference to your financial journey. Higher-rated platforms typically offer better service, simpler processes, and greater value. This survey makes the decision easier by breaking down performance so you can compare options confidently.

If you’re looking for a reliable platform for your investments, start with the top recommendations and prioritise what matters most—whether that’s customer support, fees, or user experience.

The key takeaway: Use tools like this survey as a framework to find the best fit for your goals. Investing doesn’t need to be complicated when you have access to transparent comparisons and actionable insights.

Would you like to dive deeper into any of the top providers or explore the features that might best suit your needs? Let me know, and I’ll help simplify it further!

Let’s build something that lasts.

Moving Forward With Confidence

If you’re feeling unsure about where to place your investments or overwhelmed by the latest ‘must-have’ opportunities, remember this: you’re not alone. Financial planning doesn’t have to be complicated or stressful.

Ever wanted to take control of your financial future and manage your money like a pro? The 2nd edition of Be Your Own Financial Adviser by Jonquil Lowe is your ultimate guide to doing just that. This invaluable resource is packed with practical tools, tips, and insights to help you navigate your finances with confidence and expertise. Why rely on someone else to manage your money when you can do it yourself, even better? Whether you’re just beginning your financial journey or looking to fine-tune your strategy, this book is an essential read that empowers you to take charge of your financial destiny. Be Your Own Financial Adviser is your key to making informed decisions and achieving financial independence. Don’t miss the opportunity to unlock your full potential and steer your financial future in the right direction.

At the Academy of Life Planning, we believe in putting you back in control of your financial future. Our approach is straightforward, transparent, and tailored to you. We’ll help you cut through the noise, avoid the traps of FOMO, and focus on creating real, lasting value.

Your financial future deserves more than hype. It deserves a plan.

If you’re ready to start building a strategy that aligns with your goals, we’re here to support you every step of the way. Let’s keep it simple, sustainable, and focused on what matters most to you.

By aligning with the M-Power Movement, the Academy of Life Planning demonstrates its unwavering commitment to financial empowerment. This partnership enhances our mission to provide comprehensive planning services, education, and tools, enabling individuals to take control of their financial futures. We believe in fostering a fairer society where financial knowledge is accessible to all, breaking down the barriers of traditional financial services. Together, we are redefining excellence and trust in the financial planning industry. Join us in this transformative journey.

Ready to get started? Let’s talk.

Appendix 1: Financial health of Investengine (UK) Limited

Based on the last full accounts made up to 31st March 2023, here are key points to consider for assessing the financial health of Investengine (UK) Limited:

1. Client Growth and Assets Under Management:The company had 25,618 clients as of 31 March 2023, with 18,912 new clients onboarded during the financial period. Assets under management grew significantly from £28 million to £149 million.
2. Revenue and Losses:Turnover increased from £16,783 to £73,900. The company reported a loss of £4,624,687 for the period, which is higher than the previous year’s loss of £2,923,961.
3. Expenses:Administrative expenses increased significantly, primarily due to higher staff costs and computer and website expenses.
4. Cash Position and Funding:The balance sheet shows significant cash at the bank following a successful additional funding round. Cash at bank and in hand increased slightly from £845,968 to £906,321.
5. Equity and Share Capital:Share capital increased from £9,000,000 to £13,965,000 due to new share capital subscribed. The company has no distributable reserves to declare a dividend.
6. Future Prospects:The company is in a growth phase and expects further growth in the foreseeable future. They have launched new products, such as the Self Invested Personal Pension product, and expanded their ETF offering.
7. Risk Management:The company has identified and is managing key risks, including credit and counterparty risk, liquidity risk, and operational risk.

Conclusion: Investengine (UK) Limited is experiencing significant client and asset growth, which is a positive indicator. However, the company is currently operating at a loss, which is typical for a business in its growth phase. The increase in administrative expenses and the need for additional funding rounds suggest that the company is investing heavily in its operations and technology. The strong cash position and successful funding rounds indicate investor confidence. Overall, while the company shows potential for future growth, the current financial health reflects the typical challenges of a growing business, including managing losses and expenses.