10 Perfect Tips for Perfect Personal Financial Planning
Richard Cayne is a financial consulting executive, at Richard Cayne Meyer International, talking about the need of a proper financial planning in today's economical climate.View all articles by Richard Cayne
1. Do Your Own Research & Enhance Your Knowledge
It is very essential to conduct your own research and enhance knowledge on personal financial affairs before assigning your investment decisions to any financial advisor. Without having any prior and adequate knowledge, it can be very risky for anyone to take any investment decision. So read good finance articles (online and offline), consult your friends who are into this field, gain information, think wisely and then take help of financial experts like Meyer International in Bangkok.
2. Analyze Your Savings & Income And Set An Objective
The income which we earn is variable, indefinite and subject to changes all the time. The only thing which we can take command of is to control our expenses. The formula here is to have as much income as you can by monitoring expenditures. Always remember that we can invest only what we save. So spend cautiously to maximize savings.
3. Determine Your Personal Risk Tolerance
Assessing your personal investment returns and tolerances is an essential component of proper personal financial planning. It has to be remembered that investment can never be free of risk and everyone expects good returns out of the investment which he/she has made. But on the other hand there are few people who are ready to face big risks that can be expected while looking to high returns. So learn to understand how to identify risks and look to minimize them.
4. Have Proper Diversification
In reference to diversification, it has always been said that one should never place all one’s eggs in one basket as it can be extremely risky. Diversification is the key to a perfect portfolio and to proper financial planning.
5. Set Your Personal Asset Allocation Aptly
For every individual, it is a tough and complicated decision to set personal asset allocation along with the analysis of risk tolerance. Taking help of financial experts like Richard Cayne Meyer International in Bangkok can be helpful in this regard. In fact, the asset allocation should be considered as an amplification of diversification rule only.
6. Intelligently Choose Your Financial Investments
One must choose and decide on financial investments taking the above risk considerations in mind because numerous options are available but which ones are correct for you. The factors which can increase more or less effect on risk adjusted returns should be studied and analyzed carefully.
7. Decrease Your Investment Expenses
Experienced investors know that there can be some known and unknown costs or taxation involved in an investment. Therefore every investor should cautiously control such investment costs looking to minimize fees and taxes when possible so that net returns can be maximized.
8. Guard Against Financial Risks
Various insurance policies are purchased by individuals but it is important to set a priority while doing so. It is undeniably true that sudden disastrous incidents can change and disturb one’s life. Therefore the most rational insurance purchases like that relating to life, disability, property should be considered on a priority basis.
9. Manage Your Investment Management Time
Time flies and even before we blink our eye the scene in front of us can change quickly. What is meant here is that financial planning and relevant decisions are lifelong procedures as the global economy keeps on changing, markets keep on changing and that’s why you need to manage your investment management time too so that you can devote other time on other things of interest.
10. Take Help of Experienced Financial Advisors
When you are done with your own personal financial analysis and needs, it’s now time to seek help from financial experts like Meyer Asset Management Ltd in Bangkok who can provide competent and professional consulting to help you tailor your personal financial plan so that it fits with your goals and aspirations.
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