It’s only natural that expat savers want to make the most of the cash they have stashed in poor performing offshore bank and building society accounts.
However high their money mountains may reach, they need to keep making sensible financial decisions to keep growing their wealth.
To help savers get to grips with managing all that cash, here’s a checklist of points to think about:
Don’t fritter money away
That doesn’t mean stop spending, just not to waste money. The aim is to spend the income generated by the savings, not to diminish the nest egg
Don’t make rash decisions
A sure way to lose money is staking cash when failing to understand how the investment works. Keep things simple and do not succumb to temptation
Let bandwagons roll past
Fund managers have a saying – if you can see a bandwagon, it’s already gone past. Don’t jump on late because the investment is likely full valued.
Another adage. Spread the money around. The idea is when one sector or region falls, another one steps up with a performance to match any dips or losses
It’s never different this time
Watch out for denial. If investments are like accidents, the human factor plays a part in the outcome and people like to take credit and deflect blame. Always rely on your own due diligence and not someone else’s
Look who’s talking
Market pundits and fund managers sometimes have a motive for suggesting you invest in particular sectors or companies – take what people say at face value
Keep looking under the bonnet
Investments are like cars. They need fine tuning and continual maintenance to keep them performing. Set time aside for a regular review to see if you can tweak things to give a better return
Set performance targets
Most investors look at what they have and settle for that, but shrewd money managers work out what they need in the future and set a target to aim at.
Keep some rainy day cash
Unexpected spending always crops up, so keep some cash aside for emergencies – and maybe a little for unforeseen investment opportunities that pop up
Look for value for money
Test every investment for value. Consider more than just the price – what you pay can include brokerage fees and set up costs, administration and management fees and exit charges. Along with inflation, these can all erode gains
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