It is never too early to start investing. If you ask most people in their 30s and 40s, they will tell you that they should have saved and invested more in their 20s. I, myself feel like that sometimes. Whatever I did invest in, has generated over 11% year on year returns for the last 13 odd years.
That tells me 2 things, I should have invested more, and I am glad I stayed invested. The first investment I ever made, was a Pension plan for 35 years. Now, most people will cringe at the name and the term of the plan. And I was naïve as well and was not aware of the fees etc. at that point in time.
However, I am thankful to the bank representative who did sell me the plan because it has been 13 years already, and it has done extremely well in that period, despite the fees and charges.
Quite often people tend to think that this is a bad idea. Yes, I could have invested in a cheaper platform with lower fees, but I can guarantee, what I would have actually done, is spending that money on things I did not need.What I should have done though, is appoint a financial adviser. He or she would have given me options educated me on products, help me understand the various ways in which I could spend less and invest more. That person would have also made sure, that I have a Life Insurance plan in place, as early as possible. This would have kept my premiums low, because there is never a better time to buy life insurance, than when you are young and healthy(and feel invincible).
Though the plan I bought did well, I never heard from the bank representative ever again. She went on to become quite successful at the bank though because she was a good salesperson. So most people have 2 choices.Do you want to buy from a product, or do you want to seek advice on creating a financial plan for life, from a person dedicated to your financial wellbeing?Now just like any professional, the financial advisor will charge you a fee. If you don’t want to pay a fee, they will find other ways to make the money off you.
So there comes your second choice. Would you want to pay an advisor and him be answerable to you? Or would you want him to charge you nothing, and get paid by the bank or the organization whose product he sells to you? Where do you think his loyalties will lie at the end of the day.
Let’s be honest, our education system does not do enough to teach us this life skill, of how to manage our money. The system is designed to give us the tools to make money, but not how to save, invest, or manage it. That is why you seek the services of a professional, just like you do for an accountant, a lawyer, or even a doctor.
If you would like to know more or discover how money can stop being an issue and become your stepping stone to a better life, please feel free to reach out.
