Category: Investing

How to calculate your asset allocation

The most important thing to get right when investing in financial assets is asset allocation.”Asset allocation” refers to how your funds are invested across different classes of financial...

When taking too little risk is risky

People sometimes tell me that they don’t want to take any risks with their investments. I have to tell them that all investments have risks. Even those supposedly...

Free financial advice for professional trustees

Some blunt advice for trustees of trusts with funds available to invest. You can probably save a lot of money in fees once you realise that investing isn’t that hard, and low-fee, index-based funds can do most of the heavy-lifting for you.

The difference between a financial adviser and an investment manager

If the first question you ask a financial adviser is “where do you get your research from?”, it probably means you’re confusing the roles of financial advisers and investment managers. It’s an easy distinction to overlook – many financial advisers think they’re investment managers, too.

Contracts for Difference (CFDs) and counterparty risk

I talk briefly about CFDs or “contracts for difference” (moral of the story: steer clear!), and use CFDs to illustrate something called counterparty risk. Generally speaking, the counterparty risk with a CFD is high, and the counterparty risk with a reputable managed investment scheme is low.