This article examines how asset management can help grow a person's wealth. Most people (not just the rich) have savings and assets, such as cash accounts at the bank, and pension and insurance savings, which need careful husbanding if they are not to under-perform, and fall behind inflation. Whether you manage your wealth yourself, or you employ a professional advisor, you need to assess your financial status, your objectives (both short and long term), and your attitude to financial risks. Always avoid taking financial advice from those who are not prepared to spend the time assessing your requirements as an individual.
Many people, not just the super-wealthy, have financial assets which they need to carefully manage. These assets includes savings and investments which cover emergencies (such as short term unemployment or illness), or which may be needed in the longer term, for example to put down a deposit on a home, or to provide income to live on after retirement.
People may plan their own financial affairs, or they may employ a professional adviser to help them. In either case it is important to assess their long and short term financial objectives, their current financial status, and their attitude towards financial risks.
Attitude to risk is important, as investments in financial markets will put a person's capital at risk (if the markets fall). However cash deposits and savings are not free from risk either - they often fail to attract good interest rates, and lose value when compared to the ongoing rise in prices (inflation).
It is normally stated that investments in the financial markets will usually out perform cash over a five or ten year period. However the markets have ups and downs, and being forced to sell up during a slump can lead to a capital loss. Generally people should only commit funds to stock markets which they know they will not need to withdraw for five or more years.
As market investments may go down as well as up, it is always recommended to have sufficient funds held in cash deposits to cover emergencies, which may occur at a time when the market is low. It is often recommended that an amount equal to about 3-6 times monthly income should be held in an instant access savings account (one which has no penalties for early withdrawal).
Those who wish to hold larger amounts in cash can hold the balance in longer term accounts. These can have penalties if the cash is not held for the full term, but they usually offer much better rates of interest.
Any financial consultant or asset management Guelph adviser can help a person identify their objectives, their attitude to risk, and help them choose the type of investments which best meet their profile. Regular review sessions can help identify poor performing elements in a person's portfolio, allowing timely corrective action. Over time a person's objectives may change, and asset reallocation can help keep the portfolio in balance based on a person's current requirements.
Many people, not just the super-wealthy, have financial assets which they need to carefully manage. These assets includes savings and investments which cover emergencies (such as short term unemployment or illness), or which may be needed in the longer term, for example to put down a deposit on a home, or to provide income to live on after retirement.
People may plan their own financial affairs, or they may employ a professional adviser to help them. In either case it is important to assess their long and short term financial objectives, their current financial status, and their attitude towards financial risks.
Attitude to risk is important, as investments in financial markets will put a person's capital at risk (if the markets fall). However cash deposits and savings are not free from risk either - they often fail to attract good interest rates, and lose value when compared to the ongoing rise in prices (inflation).
It is normally stated that investments in the financial markets will usually out perform cash over a five or ten year period. However the markets have ups and downs, and being forced to sell up during a slump can lead to a capital loss. Generally people should only commit funds to stock markets which they know they will not need to withdraw for five or more years.
As market investments may go down as well as up, it is always recommended to have sufficient funds held in cash deposits to cover emergencies, which may occur at a time when the market is low. It is often recommended that an amount equal to about 3-6 times monthly income should be held in an instant access savings account (one which has no penalties for early withdrawal).
Those who wish to hold larger amounts in cash can hold the balance in longer term accounts. These can have penalties if the cash is not held for the full term, but they usually offer much better rates of interest.
Any financial consultant or asset management Guelph adviser can help a person identify their objectives, their attitude to risk, and help them choose the type of investments which best meet their profile. Regular review sessions can help identify poor performing elements in a person's portfolio, allowing timely corrective action. Over time a person's objectives may change, and asset reallocation can help keep the portfolio in balance based on a person's current requirements.
About the Author:
Looking for a financial advisor Collingwood or financial planner Guelph? At Assante Capital Management Ltd- 302-660 Speedvale Ave W, Guelph, ON N1K 1E5 (519) 824-8780 - their investment advisor can devise tailored strategies to meet your financial objectives.
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