Why You Should Invest in Mutual Funds, explains Richard Cayne at Meyerjapan

Let us start by explaining what a mutual fund is. A mutual fund can be defined as a company, which invests in a diversified portfolio of securities. Saving & investing become simple and easier with mutual funds. The owners of a mutual fund are those people who buy the shares of a mutual fund. The investments of these people provide money for a mutual fund to purchase securities. The fund can make money from its securities through two methods. Either the dividend/interest is paid by security to the fund or the security itself rises in value. It is also possible that the fund drops in its value or loses money. According to Richard Cayne, there are many reasons why investing in mutual funds is advantageous.   

Provides automatic diversification

Experienced investors value diversification because they understand very well that diversifying a portfolio reduces the risks & adverse effects of single investment, says Richard Cayne Meyer International. As mutual funds hold different types of securities, they provide automatic diversification to the investor’s portfolio. In addition, it is a beneficial point that you get a much better and wider diversification (that is rarely expected when you manage at your own) because you combine your assets with other investors of mutual funds and therefore more money to spread around.  

Liquid Investments

Mutual fund shares are a form of liquid investment and therefore, can generally be sold anytime. This liquidity lets you access your money in an investment in a quick and timely manner.   That said many funds have restrictions such as monthly, quarterly or yearly only liquidity points. 

Availability of choice

Mutual funds provide you a wide variety to choose from various options. The availability of classes like money market funds, stocks or bonds provide different investment options to the investor. The investor can select the one which is most suitable for his requirement. 

Portfolio managed by experienced professionals

As per the view of Richard Cayne in Bangkok, an experienced and insightful investor always chooses his investments only after performing due research and in depth consideration to what he/she is trying to accomplish as per his/her investment goals and objectives. Any kind of investment demands continuous observance and one would be advised to seek assistance from experienced and trustworthy professionals to help manage your portfolio. These professionals continuously monitor your investments and analyze that which investments are worth buying or selling.

Low cost involved

According to Meyer International in Thailand, since mutual funds or collective investment structures can hold various assets and managed by a team of professional fund managers who will normally charge fees for such services it is important to look to minimize these fees as much as possible as play directly impact the performance of ones portfolio.  This is one reason, mutual fund advisor Richard Cayne prefers offshore registered mutual and hedge fund structures as their overall fees can be lower than their onshore counterpart funds due to lower costs of compliance and service management, not to mention they make more money as they do not have the same tax obligations.  It certainly makes sense to reason that if you paid less tax you would be able to save more money and same with fund structures.

Richard Cayne has been in offshore fund consulting and having worked in Tokyo Japan Meyer Asset Management Ltd for 15 years as investment advisor to some of the most respected securities firms in Tokyo he is also well positioned to consult with high net worth individuals and security firms around the world on offshore investments and structuring.  Richard Cayne now Managing Director of Meyer International Ltd the Bangkok Thailand servicing arm of Meyer Asset Management Ltd is also a Director of Asia Wealth Group Holdings Ltd which is listed on the PLUS market in London UK.

Richard Cayne at Meyer International Bangkok on Useful Tips for Offshore Investment

Offshore investments offer some of the best and most innovative investment solutions, according to Richard Cayne Meyer International. In simple terms, offshore investing is all about depositing one’s money or investing in structures incorporated in low tax jurisdiction. There are many places in the world which do not have taxation withheld at source for non residents of the area  and that is one reason why many people consider investing offshore. In other words, certain jurisdictions act as tax havens for people and let the wealthy investors invest freely without any worries for hefty tax payment.  Some people may be surprised to know that the USA may be considered a tax haven area for those that are non US national and non resident and as long as these people or companies invest and complete all reporting requirements there is zero tax withheld says Richard Cayne who via Meyer Asset Management Ltd` s Asian based servicing arm Meyer International Ltd based in Bangkok Thailand has been consulting on several US as well as offshore structures.

Richard Cayne who worked previously for 15 years in Tokyo Japan had via Meyer Asset Management Ltd`s Investment advisory arm helping Asian based clients with offshore fund and hedge funds.

According to offshore investment advisor Richard Cayne in Bangkok, there are many benefits that offshore investment has to offer but still the thought of investing overseas sounds risky and complicated to first time beginners. However, there are certain useful tips, which can guide you well about investing via a tax haven area or offshore territory. Even if you aim at adding a small allocation in offshore investments to your existing portfolio, it will bring beneficial returns to you in the long term.

Research is essential before you move ahead into any investment. However, you would be advised take others’ help in this regard but its a good idea to conduct research on your own too. Detailed research is vital to achieve great and profitable results.  Speak with those who have knowledge in the area you are researching. The next tip is to choose among local brokers, online services or financial advisors. It is a clear-cut fact that the local brokers charge their brokerage fee and the online services thought provide you with required help but cannot be completely relied upon. Therefore, the best option is to take help of experienced financial advisors like Meyer Asset Management Ltd`s Bangkok based servicing arm Meyer International in Thailand. Once you have decided to take advice from some experienced financial advisors, you can now look together as to how best to create your portfolio. 

As per Meyer International in Bangkok, you can choose to handle your offshore investment account directly or you can take help of a consultant.  You would also be advised to work with consultants who are authorized to consult on offshore products as many jurisdictions no longer allow for the selling, mediation or helping to arrange offshore funds to residents of that jurisdiction.  For example in Japan offshore non Japan registered fund sales to residents is not a permitted business by the regulators or FSA there.  Local brokers or advisors whether licensed or not if the offshore funds are not registered for  sale in Japan then no Japanese based financial institution can legally help.  Therefore in such case the individual would be better off consulting with an overseas firm authorized to help them.    Richard Cayne has had much experience in Tokyo Japan and currently consults both individuals and financial institutions based in Asia on offshore based structures and investments

Asset Allocation - Points to Ponder by Meyer International Bangkok Thailand

According to Richard Cayne, one of the most significant decision for an investor is how to choose an asset allocation model for his/her portfolio. Asset allocation plays a major role in determining the investment performance of an investor. Following a proper asset allocation plan can result in successful returns while following a poor plan or deviating from the plan can result in investor’s underperformance and overall, poor returns.   

Asset allocation is a diversification strategy and investors need to decide wisely upon how to position his/her portfolio as per the given options. Considering the plethora of choices available for the investor, creating an asset allocation portfolio looks very complicated and confusing. However, it is very important to choose appropriately when deciding which assets to hold, says Richard Cayne Meyer International Bangkok Thailand.

Risk is the first point that should be considered extensively by any investor when deciding upon asset allocation. The investor should be well aware of how much risk can he handle. As per Meyer Asset Management Ltd`s Bangkok based servicing arm Meyer International Ltd, every investor should always remember that the market is capricious and therefore he should be ready to face volatility. While an investor can expect stability when investing in fixed income investments it is also a clear fact that these fixed income investments have lower returns. So assessing your tolerance for risk is very essential before you allocate your assets and invest. Once you have identified your risk tolerance levels, it is time to look into equities, mutuals, hedge funds, fixed income, alternative investments, and bonds. During this stage, you need to find an appropriate balance and mix between return and volatility.  A discerning and smart investor chooses the right investment mix as per his own needs and risk tolerance.

According to asset allocation advisor Richard Cayne, the investors often get confused as to which investments and asset classes to consider during asset allocation. However, the answers to this question vary widely as not all investors share the sale risk tolerance levels.   Indeed someone looking at a product with a 20% per annum target return on their portfolio would have a very different risk tolerance to an investor looking for a 5-7% target return.  Richard who worked in Tokyo Japan for over 15 years can certainly attest to the understanding of risk tolerance levels as being extremely important when managing client expectations.  While Japanese based clients for instance would all like double digit returns few have the to stomach to accept the volatility that comes along with such return.  Japanese clients in general would like bank account like volatility with higher than the near zero return banks offer these days.

It is also worthwhile to mention that age is an important factor to be considered while deciding upon asset allocation. Every investor needs to revise his asset allocation as when his age or objectives change. Consider age a factor at an early stage while planning for asset allocation. In basic, young investors have enough time and they can plan investments that result in long-term profitable returns. On the other hand, those who are elderly perhaps in retirement  should choose options, which provide less volatile returns of a more fixed income nature.  

Indeed, there are some other points too that need to be considered while deciding asset allocation for your portfolio but understanding your own risk tolerance will help you make a good start with your asset allocation.

Richard Cayne of the Meyer Group currently lives in Bangkok Thailand and consults individuals and corporations alike on offshore funds and offshore structuring.  Meyer international Ltd is based in Bangkok Thailand and is the servicing arm to Meyer Asset Management Ltd which is a wholly owned entity of Asia Wealth Group Holdings Ltd which is listed on the PLUS stock market in London UK.

Protect Your Family’s Future with Life Insurance

A simple definition of life insurance says that life insurance is a gift we leave for our loved ones long after we are gone. Proper life cover can be a very significant planning tool for your family, opines Richard Cayne.  Having spent many years in Tokyo Japan where the majority of the population have too many policies but not proper insurance coverage Richard Cayne of Meyer International knows the value of this important tool. If you want to secure your family’s financial future, getting proper life cover in place can be a great way to provide income and continuity for your family.

Even after its’ benefits are clearly noted and understood, there are many people who do not opt for life insurance or they are under insured or they take a wrong decision on the type of insurance which they choose. Those who are unable to decide on ‘What is’ and the ‘How’s’ of life insurance should take help of reputed financial consulting company, like, Meyer International Ltd in Bangkok which is part of Meyer Asset Management Ltd..  Those who do not consider life insurance as an important need in their lives should understand the fact that life insurance is not only about the money that will be provided to your family after your death but it’s a protective shield for your family against the financial crisis which it might face in your absence. If you are the sole earning member of your family and others are dependent on you for their needs, then, unquestionably, you should have life insurance. Even the basic needs like education, medical treatment, housing expenses, different commitment payment installments, various kinds of bills etc become difficult for the family to bear when the earning member passes away suddenly.  Needless to say you do not want your loved ones to go through a tough time when you are not around!         

According to Richard Cayne Meyer International in Bangkok, life insurance should not only be seen as the money that is paid to your family after your death but it should also be considered as a valuable investment. Just have a word with any expert financial consultant, like Richard Cayne, and he will explain you that how life insurance acts as a profitable and valued financial planning tool in the event that you do not die for many years.    For different nationalities and residents life assurance can take on different financial planning goals.  In the US for example life insurance provides for tax efficient roll up on gains free from yearly reporting requirements and yearly taxation, this can be a significant benefit says Richard Cayne.  It must be US insurance though of which the definitions differs from elsewhere in the world.  In Japan for instance life insurance does not offer the same tax free death benefit it does in the US but there a core need is death benefit for income replacement.  Richard Cayne who lived in Tokyo Japan for 15 years can state first hand that Japanese have a need for proper death benefit insurance.  Having many small insurance policies as is the norm in Japan is not necessarily proper financial planning.

Life insurance provides immediate cash and helps the dependants in their time of need. It can play a significant role in paying the debts and funeral expenses of the deceased. Adequate insurance ensures that all your financial obligations are met appropriately when you pass away. If you have realized the importance of life insurance, the next step should be on deciding what type of term or permanent insurance makes sense. Term and permanent are two types of life insurance and Meyer International in Bangkok can help you decide on one that’s best suited for you as many factors like budget, financial obligation, the needed coverage periods etc, are considerations.

How Financial Consultants Can Help You Plan a Better Retirement!

Life after retirement is something that most people look forward to and dream about but not that many spend as much time planning for it financially as they do dreaming about it. Planning for one’s future happy life after retirement is necessary because it is undeniably true that one day, when we retire from our job, our children settled in their lives and we are done with most all of our responsibilities, we all look forward to get back the life we once had without all these obligations.  All of us should look to a bright future and a happy retirement but dreaming about it isn’t enough.  One must plan financially if you want to actually do all the things you dream about doing at retirement stage says Richard Cayne at Meyer International.

Having lived in Tokyo, Japan for over 15 years Richard Cayne was one of the financial advisors there to advocate planning for your retirement as early as possible while time is on your side.  Japanese are clearly conservative people and it would make sense then to plan for ones future by investing in financial instruments which can provide the growth and return on your hard earned funds.  Leaving ones future to a government or company pension plan is not adequate these days.  Japanese in particular are good savers but with zero growth from bank deposits it is crucial to look at other options.   
 
Life after retirement can be fun and enjoyable only if we plan our retirement appropriately and well in advance. Expert and experienced financial consultants, like Richard Cayne Japan, can help you create a solid plan about your life as a retiree, by taking some of the following steps.    

What Can Financial Advisors Do For Your Retirement?

Any seasoned financial consultant will accomplish the following tasks to plan a suitable retirement for you.

Assess Present Situation & Financial Obligations

The first important step which a financial advisor takes for a good retirement plan is to assess the current financial situation and concerns of the client. The very first meeting between you and your financial advisor should clarify what overall financial position do you currently have, how much can you spend comfortably, what kind of life do you want after retirement and what financial plan is best suited for fulfilling all your needs and expectations. The experts will tell you in detail about all the benefits of a particular plan and what you must do to stay on track so you can achieve your goals.  

Figure Out the Financial Goals

The second important task done by the financial advisor is to figure out your financial objectives. This step requires a deep needs analysis. The financial professional gathers all the relevant financial data and assesses the financial objectives of the client. This data is then analyzed in detail and a report, based on earlier-done analysis, is compiled and given to the client. Apart from analysis of gathered data and financial goals of the client, this report also possesses the proposal of a specific plan along with its merits and demerits, so that the client can decide upon a plan of action by taking into consideration each and every point.     

Discuss an Appropriate Plan in Detail

The third step is another meeting between the financial consultant and the client where the report being submitted to the client is discussed in detail. The client can clear any of his doubts at this stage and can put up any questions too. The advisor, on the other hand, discusses the cost, benefits and implementation procedure of the plan that has to be agreed upon.  

Apply the Plan

Once the client agrees upon a particular retirement plan, it is now time for the advisor to help implement that plan. Your financial advisor will take care of everything that is needed for implementing the plan and will keep you updated on each stage of the process.

Analyze & Revise the Investment Plan

Even after the implementation of the financial plan, your financial advisor keeps on reviewing your investments because your financial situation never remain the same and keeps on changing over time. The financial expert takes care that his client is always on the right path to accomplish his ‘life after retirement’ goals as well as the financial goals.

According to Richard Cayne Meyer Asset management Ltd, the earlier you plan your retirement, the better it will be for you. So find out an expert financial advisor today and choose a suitable retirement plan so that you can enjoy a happy and content life into retirement.

Basics of Mutual Funds

What Are Mutual Funds?

According to Richard Cayne at Meyer International in Bangkok Thailand, a mutual fund is a collective investment where a group of investors pool money together for buying a range of stocks, bonds or various other securities. The money is administered by a fund manager who trades the underlying securities of the fund, benefits from the monetary gains/losses and gathers interest income and dividend. The manager is not entitled to buy any stock when he feels like buying it.  A pre-decided structured mandate, which is explained in the fund prospectus, has to be followed. This is to help the investor make an informed decision.   

A mutual fund investment spreads your risk and helps you diversify your portfolio in a better way. Spreading the risk means reducing your chances of losing money. As per the type of fund, the gains obtained are optimally balanced and consistent. Almost all mutual funds follow a specific investment strategy.

Different Types of Mutual Funds

Richard Cayne Meyer International in Bangkok further sheds light on mutual funds and informs that mutual funds are available in different types including the bond funds, stock funds, money market funds, balanced funds and specialist sector funds. With the help of these mutual funds, one can choose to invest in the market as per his wish by either choosing the active portfolio management or by purchasing a market segment which has no intervention from a manager like an index fund. Because of the availability of various types of mutual funds, one can easily create a diversified portfolio and that too, without any excessive cost.     

Mutual Funds Diversification

According to mutual fund investment advisor Richard Cayne of Meyer International in Thailand, the best part of mutual funds is that one can invest an amount of money in single fund and can receive prompt access to a portfolio which is diversified and has reduced risks. Diversifying a stock portfolio, on the other hand, requires buying different individual securities and this is a more complicated and risky procedure.

Making Money from Mutual Funds

Just as any investment requires knowledge, caution, wisdom and being opportunistic at the right time, similarly, the mutual fund investments also need to make careful and intelligent decisions by the fund manager and only then, these funds prove beneficial and help the investor make money out of them, says Richard Cayne.

The mutual fund income can be obtained from dividends on stocks and interest on bonds. The fund can decide to sell those securities which have increased in value. This way the fund achieves capital growth and passes it on to its investors.   Richard Cayne of Meyer International has been involved in mutual fund distribution in Tokyo and throughout Japan for many years as he had lived in Tokyo Japan for 15 years.  Currently Richard Cayne is Managing Director of Meyer International Ltd based in Bangkok Thailand, and like Meyer Asset Management Ltd is part of Asia Wealth Group Holdings which is listed on London UK’s PLUS Stock exchange. 

Asset Allocation – Diversify For Financial Success

Smart and intelligent asset allocation decisions can help you gain financial success in the long run. That is why one should be quite mindful, alert and careful while making any such decision, says Richard Cayne Meyer International in Bangkok Thailand. The power of asset allocation comes from reducing risk while increasing returns. Reducing risk by combining multiple asset classes, however, is not a simple process. While each asset has its own unique measure of risk, many assets share similar price behavior (their prices go up and down together in any market). Combining such complimentary investments increase the risk of wild changes in price. Trade-offs between asset risk and expected return must also be considered. High yield assets typically experience high volatility, or large changes in price. These assets must be balanced by investments with lower rates of return to protect against large declines in value.

In the opinion of Meyer Asset Management Ltd’s Asian based servicing arm Meyer International Ltd in Bangkok Thailand, successful asset allocation requires finding the proper mix of assets to balance reward with an acceptable level of risk. Proper allocation planning requires asset research and investment analysis. Fortunately, tools are available to assist the independent investor. Popular financial websites offers independent investors help with educational links and software to build portfolio allocations based on a survey of financial questions. For advanced investors, many books have been written to painstakingly explain the theory and practice of asset allocation - also called MPT (Modern Portfolio Theory). Casual investors can purchase mutual funds specifically designed to automate asset allocation based on an expected retirement date. Careful and practical investors can explore the many financial planners and advisory services that offer asset allocation portfolios specific to their needs.

Getting exposure to asset classes like real estate, bonds, stocks, commodities, currencies, as well as geographic diversification all make sense as part of a well balanced portfolio but how are these asset classes correlated?  That is how do stocks in Japan move when stocks in America move down and what happens to the price of gold or oil as all this happens, how stable is real estate when real estate bubble bursts and stocks are going down at the same time?

Look to investments that consider such questions in their investment philosophy and are taking advantage of such opportunities.  It takes development of ones knowledge base into different asset classes that will help grow and protect your assets into the future and increasingly so going forward, says investment portfolio consultant Richard Cayne. In America and Europe only wealthy investors (or high net worth clients with over $1M in invest able funds) can access certain investments like hedge funds or private equity investments and this is consistently a growth area for the rich so if you want to grow your portfolio or maintain it you must start thinking and learning like high net worth individuals overseas who are not afraid to take calculated risks that make sense.  After all there is no point in being ultra conservative and keeping money in the bank earning near zero rates when inflation is running at 3-4% per year as that means your portfolio is running at an inflation adjusted loss and your wealth is disappearing year after year.  Also, it is unwise to expose your portfolio only to Japanese equities (which haven’t really made any gains over the past 10 years unless you have been an exceptional stock picker) when you can diversify it into varying asset classes spread into different geographical areas. Such diversification will give you a truly balanced and hedged portfolio.

As important as asset allocation is for most people, there is a direct correlation between how worried they are about retirement income, and how much they can actually do about it. This is because the more worried you are, the closer you probably are to retirement, and the less time you have to do anything - like save up. Effective 'saving up' requires time. Time so your money can grow. Save an extra $2000 a month, three years before retirement (at age 62), and you'll amass a grand total of $78,870 (averaging 6% growth). Not likely to have a big impact on your retirement lifestyle.

But what if you invested for retirement when you were NOT worried about it? What if you, say for easy figure's sake, $2000 per month. Assuming, average compound rate of return is 6%.)

According to Meyer International in Thailand, instead of starting to save when you start worrying about retirement (at age 62), and amassing that grand total of $78,870 by age 65, you start saving when you're NOT worried about retirement (at age 45) so you end up with, wait for it, --- $911,290 !

What will $911,290 do for you at age 65? It would provide you with $4560 in additional monthly income for the rest of your life (continuing to average 6% growth), and you won't have to touch your capital. Or, perhaps, you could choose to retire earlier!

Consider your options carefully. Each solution offers its own set of advantages and disadvantages. Pick a style that closely reflects your own. Just how important is asset allocation? It's the single largest determinant of your long-term financial success says Richard Cayne at Meyer International in Bangkok, Thailand.