MONEY MATTERS
MONEY MATTERS
It ’ s Your Money
BY JOSEPH BATTY , CA
Joseph Batty ’ s long history in financial management has made him a recognized authority . His experience with financial matters has covered a range from structuring knowledge-rich companies to capitalization of intangible assets .
Ihave been quoted as saying that a lot of people spend more time mowing their lawns than they do managing their money . I must have uttered this in a discussion when I was talking about how grossly complex the financial world has become . As a CA , when I bought my first copy of the Tax Act , I think it cost $ 20 and was about 300 pages . Now , it is over 1,000 pages . Finance , banking and investing have become equally daunting .
Is it any wonder that so many people have yielded decisions about their money to the new army of ‘ investment advisors ’ that populate our financial institutions ? Sadly , there is an overwhelming sense of helplessness that permeates our society when it comes to money matters . Sadly , as well , there is a mountain of evidence that suggests our many financial institutions know this sense of helplessness exists and they prey on it to their advantage .
So what are some basic facts that you should know and use when you manage your money ?
First and foremost , it is your money ( not the bank ’ s or brokerage firm ’ s ), so you have 100 % control over where your money is placed .
Do not let a financial institution bully or intimidate you into believing that , once you write them a cheque or transfer your money to them , they now decide where to place your money . These institutions have impressive questionnaires and sets of tidy , neat forms ( that seem logical ) to designate your level of sophistication and your agreed level of risk . Once they get you to sign them , they take control and also absolve themselves of any responsibility if you lose some of your money .
It ’ s your money — you should the one deciding what to do with it .
When people walk into the offices of the bank or brokerage firm to discuss their thoughts with an ‘ investment advisor ,’ many of them become intimidated because of the complexity of the discussion . At this point , many people yield their decisions to the person across the desk from them ( even though they may not know this person ). The whole ambiance of the building and the institution seems to create a false sense of security and trust , even though , in most cases , people know there is evidence that this trust is often betrayed .
Thinking back to my own school days , the 3 R ’ s —
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