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Why Take Responsibility For Your Own Investments?Posted by securities on: 2006-07-26 10:14:32
Phil Wengier I see people handing over money to a financial advisor or broker or fund manager and expecting them to make money for them all the time. Granted it's their job - however 70-80% of them don't do better than the market average. In my time mentoring and coaching people in the share market I have met many with sad stories about how their trusted broker or financial advisor took their money and lost lots of it. Well in reality what happens is that people hand their money to the broker or advisor or fund manager quite willingly. Most inexperience investors loose money in the share market. This includes brokers, financial advisors and fund managers. I have coached brokers and fund mangers on making above average profits from the share market. Why would that be the case if they already knew how to do it? Brokers know how to sell brokerage. That's what they do. They don't automatically know how to make money just because they are brokers. Financial advisors know about investment law, know what they need to disclose, know which fund manager pays them the most commission for putting other peoples money into their funds and know how not to get sued. They don't automatically know how to make money just because they are financial advisors. Fund managers know how to buy shares they think might do well. They are obliged to buy shares when they get your money and not wait for the right time and price. They don't automatically know how to make money just because they are fund managers. Don't get me wrong. Not all brokers, financial advisors and fund managers are in this bracket. Some do know how to make money as well. How can you take control? By teaching yourself how to make your own share investment decisions without the aid of brokers, financial advisors or fund managers. By making sure you get plenty of practice at it without risking your funds so when you do invest real money you are confident that you will get a better return than the average, which also includes most brokers, financial advisors and fund managers. Secondly I constantly meet people who are taking advice from people who are not rich. People come to us with stories about where they get their share tips from. Some are quite frightening. Most tips lead to financial disaster. Occasionally one might pay off, but that is rare. Fancy putting you money into a share tipped by a taxi driver. Unless the taxi drive has made a pile of money from shares. In that case he is worth listening to. Again there's one main way to fix it - and I've given it to you above. About the author: About the Author Learn more about Successful Investing or download more information here . Phil Wengier has been successfully investing in financial markets for over 30 years and is the owner of several companies. |
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