Seek wise financial advice

One thing I do not understand about Asians is their obsession with the next hot thing. A competent financial adviser can research the best investment opportunities to death but when a client hears a hot rumour from his relatives or friends, all bets are off. He will be scrambling to buy this hot company that is soon to be acquired or has the new big product. The power of greed is difficult to resist. However, from my experience, there are not many rich punters around. There are old soldiers and there are brave soldiers, you do not get to see many brave AND old soldiers around. If those relatives are so good in their predictions, they would have been rich themselves. More often than not, they aren't.

Our clients must realise that they need to invest with people who know what they are doing and have a good track record of succeeding in what they are doing. After all, you don't hire the plumber to fix the roof. Hire the right experts who they themselves are successful financially. If they don't have their financial house in order, how are they suppose to give the right advice. It is just like showing a young footballer all the greatest goals ever scored in the World Cup but when the crunch comes, can he perform and slot in goals? No way! You will want to go to someone who 'has been there and done it', and has been very successful in doing it.

Don't massacre the fruits of your labour

Allowing the children of your initial capital the opportunity to grow up and reproduce to enhance your wealth is essential to wealth management. The power of compound interest has been talked to death. But immediate gratification is somehow always more satisfying especially after a period of waiting. However, the clients would have won the battle but will eventually lose the war.

We may already know the principles of compounding but lack the discipline to structure the three principles into a regular routine. It is thus time to reflect and put these principles into action.

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