As a child I used to love playing monopoly, which I had not done for years, but the other day, while braaing with friends, I re-discovered my monopoly board and could not resist the temptation. My friend Emil and I
Don’t only trust your instincts
Value of Good Financial Advice
Warren Buffett reckons to be a good investor “All you need is emotional control and the temperament to avoid self-destructive behaviour”. If that is so, why is it so difficult for the average investor? The problem is we are intuitively
Zookeeper in charge of feeding the tigers
What does your financial adviser do for you? According to Daniel Kahneman Nobel prize winner and author of “Thinking, Fast and Slow”, financial advisers are responsible for: “The anticipation, diagnosis, and the management of client discomfort and regret.” Kahneman &
Assess investment risk in retirement planning
The three risks underlying retirement planning is longevity, inflation and investment risk. As a retiree you have no control over your longevity and the inflation risk. If only we knew when our time was up planning would be easy. Just
Financial advisors also act like preachers
At gym the other day a local minister mentioned that he regularly read my article. He questioned me on the difficulty of selecting a new topic each week. His passing words were, “at least you know how we ministers feel
Financial advice as clear as mud!
The following is an extract from client feedback written for an offshore client invested in a portfolio of multi-asset global mutual funds, which I feel touches on some important investment points for the current investment environment and investment principles in
Pending change in financial advice law is good
I like to use the analogy of a pilot and co-pilot to describe the role / relationship between a financial adviser and the client. I have always considered the client to be the captain and the financial adviser the co-pilot
Are portfolio and objectives in sync?
If you do not want to erode capital in retirement your investment return must provide for both income and costs after inflation. If you’re drawing 5% income and the underlying costs are 2.5% then your investment needs to earn 7.5%
What you don’t want to hear from your financial advisor
As investors we hate ambiguity, we want certainty, which is why we dislike the idea of randomness. We want our advisors / managers to know exactly what is going on. Financial experts must speak confidently and explain what is driving
Establish a mandate with your advisor
I found myself on the opposite side of the desk last week requiring medical advice for a minor surgical procedure. The doctor discussed the procedure with me detailing exactly what was required and a week later I was booked into