|Do any financial products make
a contribution to your personal financial management at a price
you are prepared to pay?
We have brought you to a style of personal financial
management based entirely on assets. Assets are the building
blocks of investment. Products are only assemblages of those building
blocks. The question you must ask of products is: do they help you
to carry out your financial plans?
We make no secret of our belief that it is safer to
keep away from products entirely. This is not because there are
no good products: it is because there are so many bad products and
you cannot chose between the good and the
There is a whole section of this site devoted to the
consequences of choosing
products. You should browse this before making any decision.
The key points for us are:-
- Costs are critical. Do
- Good products offer you convenience or a
service which is worth something to you. Understand what you are
paying for the service and make your own judgement. Costs
- Do not pay for outperformance: a) it is extremely
rare, on a consistent basis, b) it is impossible to recognise
until it is too late. Star
- If a product is not clear about its costs
or its investment strategy, bin it. In short, opacity is a crime
and a warning.
- If a product locks you in (typically through
exit penalties), or has the capacity to lock you in, you need
to consider very carefully whether you trust the product provider
not to adversely change either its costs or its investment strategy.
- Remember you are not being offered altruism:
you are being sold. Hype,