Richard Cayne Meyer Asset Management Ltd says that risk assessment is an important consideration when choosing investments and conducting financial planning. Usually, when people define risk as it pertains to financial planning and asset management, the response is that risk equates in some manner to risk of loss of current investment value due to poor investment performance or due to losses incurred as a result of broad market declines. Risk, therefore being defined as the fear of loosing money. Richard Cayne suggests, risk be defined more broadly as something you want to happen actually not happen. Risk associated with asset selection is manageable by picking managers who have demonstrated their ability to outperform benchmarks and indices and provide capital preservation over long periods of time usually 3-5 years plus. In other words, don’t use funds that don’t perform, and don’t use funds that haven’t proven themselves.
Richard Cayne currently residing in Bangkok Thailand says that it is also important not to confuse market fluctuation with risk. For savers who own mutual funds, whether they own good ones or bad ones, market fluctuation is a fact of life, and it is not a bad thing; it is in fact a good thing as long as investors behave correctly. In other words, don’t buy high and sell low. Market fluctuation is the engine that drives the growth of mutual funds, and when an investor owns a quality fund for an extended period of time, market fluctuation enables larger share purchases at lower cost and accelerates the growth of funds. For investors who invest regularly, a strategy usually referred to as Dollar Cost Averaging, market fluctuation is being exploited to the investor’s advantage. When one invests a consistent amount of money on a regular basis (monthly, quarterly or yearly, for example) that investor buys more shares when prices are low and less shares when prices are high. This results in the average cost per share being lower than the average price per share over the investment period.
There are other, often less considered risks; risks that can be as much or more deleterious than picking a bad fund manager. The risk that you have not quantified your financial goals and priorities, and therefore, have no plan, and no clear picture of your financial “outcome”. The risk is that you will run out of money during retirement. The risk that your financial goals and objectives will be derailed due to premature death or incapacity. The risk that your desired outcomes for the people who are important to you will not transpire due to asset transfer laws and taxes. Richard Cayne working as Financial Advisor in Tokyo Japan and at Meyer Asset Management Ltd has explained to hundreds of Japanese individuals how important considering the risk of not doing any financial planning for themselves or family that is truly the biggest risk. Now Richard Cayne at Meyer International Ltd is also helping people in Bangkok Thailand and the region understand and learn how to manage and mitigate risks.
Richard Cayne when in Tokyo Japan said most Japanese feel challenged and wonder how to get the ball rolling and what the first steps should be. If you have not done so already, start by creating a clear picture of what is important to you and what you want the financial aspects of your life to look like. This is your life and your life plan after all so be as specific as you can. Write it down, and then get professional advice on how to accomplish these things that are of great importance to you. Good advisors, whether financial advisors, attorneys, accountants, or other professionals don’t give you a plan. They listen to you to understand what you want, then advise you on how you may best accomplish your plan. Start straight away if you haven’t already done so as waiting for tomorrow is a waste of today.
Meyer International Ltd based in Bangkok Thailand along with Meyer Asset Management Ltd form part of the Meyer Group of companies which is wholly owned by Asia Wealth Group Holdings Ltd which is a London UK listed Financial Holding company. Richard Cayne Managing Director of the Meyer Group has lived in Asia for over 17 years with the majority of his time living in Tokyo Japan consulting high net worth Japanese individual and corporate clients on offshore financial planning, investment and structuring matters.
Article Source:- http://richardcaynes.wordpress.com/2012/09/09/richard-cayne-meyer-asset-management-ltd-on-risk-assessment/
Richard Cayne currently residing in Bangkok Thailand says that it is also important not to confuse market fluctuation with risk. For savers who own mutual funds, whether they own good ones or bad ones, market fluctuation is a fact of life, and it is not a bad thing; it is in fact a good thing as long as investors behave correctly. In other words, don’t buy high and sell low. Market fluctuation is the engine that drives the growth of mutual funds, and when an investor owns a quality fund for an extended period of time, market fluctuation enables larger share purchases at lower cost and accelerates the growth of funds. For investors who invest regularly, a strategy usually referred to as Dollar Cost Averaging, market fluctuation is being exploited to the investor’s advantage. When one invests a consistent amount of money on a regular basis (monthly, quarterly or yearly, for example) that investor buys more shares when prices are low and less shares when prices are high. This results in the average cost per share being lower than the average price per share over the investment period.
There are other, often less considered risks; risks that can be as much or more deleterious than picking a bad fund manager. The risk that you have not quantified your financial goals and priorities, and therefore, have no plan, and no clear picture of your financial “outcome”. The risk is that you will run out of money during retirement. The risk that your financial goals and objectives will be derailed due to premature death or incapacity. The risk that your desired outcomes for the people who are important to you will not transpire due to asset transfer laws and taxes. Richard Cayne working as Financial Advisor in Tokyo Japan and at Meyer Asset Management Ltd has explained to hundreds of Japanese individuals how important considering the risk of not doing any financial planning for themselves or family that is truly the biggest risk. Now Richard Cayne at Meyer International Ltd is also helping people in Bangkok Thailand and the region understand and learn how to manage and mitigate risks.
Richard Cayne when in Tokyo Japan said most Japanese feel challenged and wonder how to get the ball rolling and what the first steps should be. If you have not done so already, start by creating a clear picture of what is important to you and what you want the financial aspects of your life to look like. This is your life and your life plan after all so be as specific as you can. Write it down, and then get professional advice on how to accomplish these things that are of great importance to you. Good advisors, whether financial advisors, attorneys, accountants, or other professionals don’t give you a plan. They listen to you to understand what you want, then advise you on how you may best accomplish your plan. Start straight away if you haven’t already done so as waiting for tomorrow is a waste of today.
Meyer International Ltd based in Bangkok Thailand along with Meyer Asset Management Ltd form part of the Meyer Group of companies which is wholly owned by Asia Wealth Group Holdings Ltd which is a London UK listed Financial Holding company. Richard Cayne Managing Director of the Meyer Group has lived in Asia for over 17 years with the majority of his time living in Tokyo Japan consulting high net worth Japanese individual and corporate clients on offshore financial planning, investment and structuring matters.
Article Source:- http://richardcaynes.wordpress.com/2012/09/09/richard-cayne-meyer-asset-management-ltd-on-risk-assessment/
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