Top 5 Tips to Managing Your Wealth

Taking small steps to correctly manage your finances can provide some comfort even during a period of market volatility. Mufazzal Kajiji, Global Head of Wealth Management and Affluent Banking at FGB, suggests 5 simple tips to stay on top of your finances:
Do your homework – develop and build your financial literacyStocks, bonds, equity trading funds (ETFs) and real estate investment trusts (REITs) are all well-known investment terms – when investing your money, it is important to know and understand where your finances are going. Therefore, it is essential to spend some time building your financial literacy. 

Whether you choose a wealth manager or financial advisor to manage your investment or you personally manage your own portfolio, make sure you understand the basic terms and mechanisms of these funds and assets to avoid costly mistakes. 

Getting the right adviceThere are a number of institutions offering extensive wealth management services and solutions but before you choose, do your research before deciding who to entrust with your money. Listen to recommendations and feel comfortable that your wealth manager understands your financial circumstances and objectives – short and long-term. Gain a clear understanding of their experience with other clients; do you feel confident that you can build a strong long-term relationship with them? Importantly, they also need to help you pull together a financial planning strategy that you understand and are willing to follow through on.

Don’t forget to make sure they are professionally certified with strong experience, and knowledgeable across all of your financial goals, whether they be mortgages, tax, investment solutions or insurance, and are upfront with charges and additional fees.

Manage your risk – keep it simple, understand what you ownAssessing your attitude towards investment risk is an important aspect of wealth management.  While you might have a wealth manager who is overseeing your investments, it is vital to understand all of your investments and know the risks you are taking, it is your money – do not outsource that final decision to your financial advisor.
Also make sure you have adequate insurance policies such as life, disability, auto, and homeowner’s insurance policies to cover any unexpected losses or claims.

Regularly review your portfolio and financial goalsYour financial portfolio, whether liquid savings or a mixed-asset investment portfolio also requires regular reviewing. You might have a change in your personal situation or financial circumstance or have a short term achievable goal such as buying your dream home or indulging in buying a luxury car. Keep reviewing your portfolio and regularly speak to your wealth manager to ensure your financial goals are still achievable. How much do you want to achieve; is it feasible and by when?

Diversify!Small movements in the market can have a direct effect on property prices, commodities, equities and currencies. Holding a well-diversified investment portfolio and choosing a wide spread of investments leaves your portfolio less vulnerable and over-exposed to a single sector or asset class. Diversification can protect investors, achieve additional growth income and generate sustainable yields during market uncertainty and over the long-term.

 Original Article Found in Wealth Monitor