I bet you have asked yourself these question many times over. What is the best thing I can do with my money? What is the best stock or mutual fund to buy? And quite rightly so, these are valid questions.
Like I have always said that financial management is a beautiful subject as there are always clear cut answers to your questions but this is provided you ask the right questions.
In the above questions you are basically asking what is the best product to buy? Now the questions have many answers depending on who you are talking to. But suppose you were to ask; what is the best strategy for me? You can be sure you will receive probably no answer.
That’s because most financial advisors are not trained and geared to answer this. They are trained on products. Their product manufacturers tell them that their product is the best and give them a story to prove it. The advisors believe so and hence act as instructed. It is not their fault but you will have to wait while things change over time. But therein lies the dilemma. You cannot wait till times change. You have to act now. What should you do?
The generic rule is to stop buying products, asking for product demonstrations and features.
Look for strategy. In the absence of strategy providing advisors you have no choice but to create your own strategy. How should you go about doing this? Count all your money wherever you have it, whether bank or into some instruments. Wherever applicable take the current market value. The total you get is what you have.
I understand that you cannot make a strategic financial plan on your own, however, you can do the next best thing which is prepare a strategic investment plan in a manner geared to generate wealth over years. Thereafter, whenever you get a financial plan done by qualified experts it, would be a rearrangement of your investments towards your life’s financial goals.
Here is a glimpse of what a strategic investment plan may look like.