It seems there are a lot of myths flying around when it comes to money and many of these are stopping ordinary people like you get the most out of their savings and investments and even threatening their future financial security. We covered three of these in a previous post:
- Money myth number 1: Money is safe in the bank
- Money myth number 2: The stock market is too risky
- Money myth number 3: Only wealthy people need a financial planner
If you hold these beliefs, you may want to check out our blog post here to find out why they might be costing you dearly.
And there are more myths to debunk! Here are three more money myths that could also be jeopardising your future financial security.
1. Financial planners will also manage investments
Financial planners and investment managers are both working towards the same aim: to generate wealth for you, but their roles are quite different. The role of a financial planner is to look at your situation from a holistic point of view. A planner will assess the overall state of your finances and ascertain your financial goals for the short and long term. They will work out a way to align the two. In this sense, a financial plan is like a roadmap to success and your financial planner is the architect of that map. Together you will look at budgeting, saving, spending and investing and outline objectives and actionable points to get to your desired destination.
An investment manager is concerned with how your savings should be invested. They focus on risk tolerance, asset allocation and diversification to help you decide what proportion of your savings should go into stocks, bonds, real estate etc in order to maximise your returns. With so many investment options on the market, an investment manager has the knowledge and expertise to help select the ones that are best suited to you.
Although many planners do manage investments, few individuals have the expertise to carry out both roles effectively.
Our advice: Choose a financial adviser that works closely with dedicated investment managers. The latter will have more in-depth knowledge on investment options, backed by extensive research into the performance of stocks, shares and funds. They are much better placed to make informed decisions about where and how to invest. Infinity is proud to be the exclusive partner in Asia of Tilney, a UK-based, award-winning wealth manager. Working together, our financial advisers and Tilney’s investment managers are a dream team who deliver solid results for our clients.
2. All financial planners are sharks
Many people have a deep distrust of financial planners and we get it. Poor financial planning standards was the very reason our MD, Trevor Keidan, set up Infinity in the first place. The industry’s reputation has been tarnished by too many sharks offering poor advice and resulting in clients failing to get the return they are promised, and even losing money.
However, there are good planners out there too who will manage your investments with integrity and professionalism, offering sound and trustworthy advice based on your genuine needs and applying rigorous standards to get proven results.
Our advice: Before engaging a financial planner, do your due diligence and check out whether the person or company has a proven track record. When you find an adviser you like the look of, prepare a list of questions to ask in an introductory meeting (which should be free) to see if you are a good fit. It’s important that you feel 100% comfortable with whoever you choose because you will be sharing extremely personal information with them. If you have doubts, carry on searching. You’ll find some good advice on choosing a financial planner here.
3. I’m too young to start planning for retirement
Whatever your age, you are never too young to start planning for retirement. The earlier you start, the longer you have to achieve your aims and the easier it is going to be, thanks to compound interest.
If you are fresh out of uni and just starting on the career ladder, now is the time to start.
If you are in your 30s and getting established but haven’t yet got round to saving for retirement, now is the time to start.
If you are in your 40s or 50s and starting to panic because retirement suddenly doesn’t seem so far away and you don’t have any nest egg to speak of, now is the time to start.
A comfortable retirement is by no means a given but with a long-term financial plan you can definitely make it happen. A decent pension will give you flexibility over when you retire and freedom of choice to lead the life of your choosing when you finally stop working.
Our advice: If you haven’t already started saving for retirement make it an absolute priority to start. Book an appointment with a financial adviser to discuss your situation and put some concrete savings goals in place to ensure that you will have enough to enjoy your twilight years.
If you are looking for an independent, client-focussed financial adviser in Asia, Infinity could be the solution. We have built a strong reputation across the continent for professionalism and trustworthiness by always putting our clients first. Our highly qualified advisers have helped thousands of clients plan and invest for a secure financial future.
Why not contact us and see what we can do for you?
A leading provider of expat financial services and wealth management services across Asia.
