Today in class we began working on our second presentations of the semester. Jane and I were decided to present on the topic of "DIY Investing: How to Become Your Own Financial Adviser". I thought this would be really interesting to research as we've spent a good amount of these past months discussing the controversy surrounding financial advisers. The article emphasizes that it is not necessary to have a financial adviser, and everyone is capable of successfully managing their finances, including things like investments and insurance, without any involvement from one.
My part of the presentation focused on the beginning portion of the article, which talked about how the first step in becoming your own financial adviser is to review these 5 main foundations: your spending, your insurance, your debt, your bank account, your will. The next step is to simplify your investments- if you have a regular savings product or offshore bond, you might want to review what the charges within the plan are and what effect it has on your investment performance.
You should also review your existing investments and stocks in the current market. The article recommends NOT using structured products and unregulated Collective Investment Schemes (which are complex and specialized) as they can be higher risk. If you have any of these funds in your portfolio, you should consider exiting them if possible. The next step is to open an offshore private bank account- it’s a low cost way of consolidating your assets and managing your money. From this article, I learned that simplifying your investments might seem difficult/complex, but once you’ve done so, you’ll be in a much stronger position to continue building a successful financial future.
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