One question that top financial planning consultants such as Richard Cayne at Meyer International hear over and over is this: What do financial planners invest in when they are investing their own money?
Their clients know what they recommend but they can’t help wondering, “What do they invest in themselves?” They know that their planner gives them the best possible advice based on their unique financial goals, assets and needs but they still want to know what their planner is using to increase their own nest egg and to fund their dream future.
Richard Cayne invests in the same mix of financial products that he recommends for his own clients. He admitted that he is even a bit more conservative than most of them.
Here are some things that he said help him when deciding what to invest in next:
Choose Investments and Fields You Feel Passionate About
Cayne advised that you invest in fields that interest you. If you are always reading about tech and know all of the latest developments, invest in tech. After all, an educated savvy investor is a good investor. On the other hand, if real estate bores you to tears and you can’t finish one article on the subject, don’t invest there.
Don’t invest in something just because you hear it’s “hot.” Invest in what starts the gears of your mind spinning. If it incites interest in you, it’s likely that other people (both investors and consumers) will feel the same.
Diversify
Much like a good financial planning consultant, a good investor knows how to diversify. A diversified portfolio is crucial to keeping your finances and your mind calm.
Spread your investment into different fields, different products, various jurisdictions and even several different companies within a certain field that interests you.
After all, if you have investments spread into many different fields and products, you don’t need to be too upset if one market, company or jurisdiction suddenly takes a tumble as the others should balance your portfolio out. Provided it is well enough diversified.
It Doesn’t Hurt to Have Some Safe Investments as Well
Like any financial planning consultant worth his salt, Richard Cayne will tell you that it’s a great idea to have a base of “safe” investments to go alongside your budding tech portfolio, angel investments, resort real estate investments and other passionate must-haves.
Your safe stocks, bonds, multi currencies, pension plans and simple savings should always be there for you. Those investments give you peace of mind and allow you to sleep at night when your other investments might be fighting for your worry and attention.
For further information about financial planning and other investment topics, Richard Cayne and Meyer International can be reached at (+66) 02 611 2561
