Fools and their money (2)…
Here follow the next 3 points in the series “fools and their money” – just good common sense advice!
- 4. Get an education about financial matters – no one will look after your money like you will so make it your business to find out about your business. There is no need to be ignorant – read the financial papers and financial magazines – you can even consider doing a course that will teach you the basics about money (as a starting place get on the web and search for “financial education”).
- 5. Ask questions – lots of them. There are no silly questions when it comes to your money – if you don’t understand then ask until you do…remember you have the money and they want it so make sure you know what you are getting and all the implications associated with it. If you are not sure what it is that you are signing, dont sign it…keep asking until you do understand and then if you are satisfied with the answers, sign!
- 6. Get it in writing – if you don’t do this then you have no comebacks later. This goes for the quotes, the recommendations, the costs (upfront, ongoing, exit), the term, the guarantee (if there is one). Also insist that your financial advisor makes his/her recommendations to you in writing. These should be on a company letterhead and you should insist on getting a signed copy. It is also a good practise to take notes at your meetings with your financial advisor…this way you will remember what it was that you discussed and who was responsible for the next actions.