05 Jan 2026 2 min read Wealth Strategy

Systems vs. Goals: A Better Way to Manage Wealth

Most 2026 investment goals fail by February because they rely on willpower. With Morningstar data showing only 14% of active managers win, here is how to build an automated "system" for your portfolio before the April FCA deadline.

Most investment goals fail by February.

Why? Because they rely on willpower. And in a market defined by shifting Bank of England rates and high volatility, willpower is a poor strategy.

As James Clear famously noted: "You do not rise to the level of your goals. You fall to the level of your systems."

If your investment "system" relies on you remembering to log in, checking the news, or manually transferring money, you are not building wealth—you are testing your memory.

The 14.2% Reality Check

Most people set a goal to "beat the market." This is statistically unlikely.

According to the latest Morningstar Active/Passive Barometer, only 14.2% of active equity managers managed to outperform their passive counterparts over the last decade.

In the UK, the odds are even steeper. S&P Global (SPGI) SPIVA data consistently shows that the compounding effect of higher fees in active funds eats the very "alpha" they try to create.

The Fix: Stop trying to be a "winner" who picks the best stock. Start being the type of person who never misses a contribution.

Your 2026 "Systems" Checklist

Investing is becoming more transparent. With the FCA’s Consumer Composite Investments (CCI) regime coming into effect in April 2026, we have a unique opportunity to streamline our portfolios.

Here is how to build an identity-based system:

The Identity Shift
Don't say "I'm trying to save." Say "I am a disciplined investor." Prove this identity by setting up a Direct Debit to your Stocks and Shares ISA or SIPP the day after payday.
The System: Money leaves the account before you can spend it. Each transfer is a "vote" for your future self.
Reduce Friction
The new FCA CCI rules force platforms to provide clearer summaries. Use this. If you cannot explain your investment to a 10-year-old, the system is too complex.
The System: Strip back to low-cost, diversified index trackers (like the Vanguard FTSE Global All Cap). Complexity is often just a hiding place for fees.
The 2-Minute Rule
If you haven’t started, don't aim for a £20,000 ISA today. Aim for a £50 monthly contribution that takes 2 minutes to set up.
The System: As Clear says, "A habit must be established before it can be improved."

The Bottom Line

The score takes care of itself. Focus on the system of monthly, low-cost, tax-efficient investing, and let the compounding of 2026 do the heavy lifting.

💡

This content is for educational purposes only and does NOT constitute medical or financial advice. I am a healthcare professional, but views are my own and do not represent my employer or regulator. Analysis is based on public data. I am not a regulated advisor. Capital is at risk.