5 Tips to Separate Emotion from Logic – by Richard Cayne

Your money. Your future. Your family’s future. What could possibly be more important? It is perfectly reasonable for you to be concerned about your family’s future in regards to your investment decisions. So do you follow your gut when it comes time to buy or sell with an investment? In times as uncertain as these, it’s a difficult decision to make on whether to pull the trigger or not with various investments. A review, hopefully with a trusted financial advisor, is something you absolutely need to do before making any knee-jerk decisions that may hinder you in the long run.

Sadly, when it comes to money, some of us are our own worst enemies. Thankfully, there are strategies and tools we can utilize to our advantage when wrestling with the difficult decisions.

Know your limits

Even the most successful and wealthiest among us have to consider all the options at their disposal, including their own appetites and capacity for risk.

If you find yourself staring down a potential investment opportunity, you have to weigh the potential between profit and loss. Can you handle the loss? Always remember: There is no such thing as a sure thing.

Sometimes we feel that sense of FOMO (fear of missing out). There may be a strong urge to seize what seems like a major opportunity, but regardless of whether you’re buying or selling, you need to consider just how much of a risk you are willing to take on.

Think in the long-term

Recent market fluctuations that have come about due to COVID-19 have proven that, ultimately, markets can and often do level out, even after being slammed by catastrophe.

With that in mind, to react to hastily to sudden or alarming fluctuations in the market may lead to you suffering unnecessary losses.

Thinking in the long-term sense can help you to study past historical performances in your given market and ultimately pause long enough to take a deep breath and consider the best course of action for your investment strategy. Just look at the S&P 500. Since its inception, the S&P 500 index yields an average annual return of approximately 10%. Just because it dips a little doesn’t mean it’s going to plunge. One must always maintain a broader view of the situation.

Educate yourself

Making informed choices is key if you don’t want to sit around waiting in the long term. Your portfolio is bound to start shrinking fast if you buy everything that is gaining value and sell everything that’s on a downtick. Don’t get triggered by that FOMO. Due diligence and research are the name of the game. It doesn’t hurt to take that extra time to read up on what you’re investing in find out for certain where your money is and, more importantly, where it’s going. The extra time you take to do the research will be of great benefit to you in the long run.

The media does not know everything

There’s nothing wrong with utilizing news and media outlets to your advantage in becoming more well-informed. They can be an excellent launching pad, particularly if they have a solid reputation in business and finance.

Always keep in mind, however, it’s not their job to look after your money. It’s to grab the attention of the reader. So while it may be a valuable source of information, it’s paramount that you stay as widely read and well-informed as possible. Don’t get sucked in by the clickbait headlines that pop up all over the place. As the old saying goes: “Trust but verify”.

Don’t be afraid to ask for help

In addition to doing your own research, it never hurts to reach out to a trusted expert. I myself have spent decades assisting and advising high net-worth individuals. I can explain, review and discuss your investments with you as they apply to your particular financial situation to ensure that you make the best and most well-informed decisions for your money and your future.

Richard Meyer Cayne has helped many High Net Worth Families with issues such as wealth accumulation, succession planning as well as overall portfolio construction and management using modern portfolio theory. Richard Cayne has helped from both very basic beginner portfolios to advanced extensive portfolios and has assisted thousands of Japanese accomplish their financial planning goals and objectives. Richard continues to try and make a difference in his client’s lives and always encourages his clients to discuss their family’s finances with their children in the hopes of getting them involved in understanding how the family can preserve and grow its wealth and contribute new ideas towards the common goals of the family.

In 2010 The Meyer Group was acquired by Asia Wealth Group Holdings Ltd listed on London’s AQUIS Stock Exchange

Pension Transfer Opportunities

Many people look at their pensions and think there is nothing they can do with them. Though they may not like it, they think their only option is to let that money sit and accrue a minimal amount of interest. They believe they are stuck with whatever terms their pension holder has outlined and that there is little they can do to change that.

In most cases, however, that’s not the reality of your retirement saving options.

You might think that you are stuck with your pension terms because it is impossible to transfer pension deposits or perhaps you fear that you will incur large fines and penalties if you do try to move that money. That may not be correct and you might be doing yourself a financial disservice by not looking into it.

Many nationalities have pension transfer options and, in most cases, pensions can be transferred into other sorts of investments with little to no penalties at all. In fact, moving your pension into diversified investments will most likely make you more money to retire with.

So, what are you waiting for?


Forget the “Don’t Mess With It” Attitude

People often think that they don’t want to touch, move or otherwise “mess with” their 401k, IRA or other pension account. They think that it has a tax advantage to not touch it. Actually, in most cases, you can usually easily roll that 401k into something else of your own choosing that pays out more dividends. The only stipulation with these accounts is that you can’t take it out of the IRA and 401k and remove it as cash – that’s when you get hit with a big penalty.


It’s More Flexible Than You Think

Many people have the notion that pensions aren’t transferable because transferring the money isn’t necessarily encouraged by the companies that hold the pensions. Since they don’t let holders know about these options, it just makes sense that people know very little about them. But it might be worth your financial while to find out what your options are.

By talking to a financial planning consultant like Richard Cayne of Meyer International, you can learn about all the possible options for making the most of your pension deposits. You might tip your hat to that financial planner when you are retired on a beach somewhere with a frozen drink in your hand!


What a Planner Might Recommend

Richard Cayne would almost always recommend moving your pension into an investment that can make the most money for you while still remaining as safe as every pension should be.

One of his favorite pension recommendations is rolling the money into some reliable annuities such as those that track the S&P index with principle guarantee. By doing this, you’ll increase your profits while still having the highest level of protection on the downside. Like all planners, Cayne knows that you’ll want the highest protection for your retirement fund.

For further information about pensions, how to make the most of them and other investment topics, Richard Cayne and Meyer International can be reached at (+66) 02 611 2561

What do Jurisdictions Get Out of Being Tax Neutral?

Most of us are familiar with the concept of offshore banking and investing. We might even know the names of some of the small, exotic jurisdictions that are best known for offshore investing and tax neutrality. The Cayman Islands, Belize and other locales seem to be little more than far-flung beaches with, apparently, lots of banks and brokerage houses. Even the people who hold significant investments there are not likely to ever visit the shores of these places.

Did you ever wonder what these jurisdictions get out of being tax neutral? Here, Richard Cayne of Meyer International explains why these tiny nations choose to make themselves financially attractive and become havens for offshore investors:


Develop Industry

The biggest draw for small nations to become tax neutral offshore jurisdictions is that doing so develops an industry for them. Think about it. These small countries have little to no products to export and little industry in their countries. Aside from modest tourism business, how will the residents make a living?

By developing a profile that would make their island nation attractive for offshore banking needs, all of a sudden a whole industry opens up. This creates jobs in many sectors. From construction to build the offices to positions for people to answer the phones, build the IT systems, clean the floors and more.

With an offshore investment industry in place, these small islands are able to create jobs and wealth for their residents and a much-needed service to foreigners. For these small countries and their offshore clients, it’s a win-win situation.


Stimulate the Economy

Providing well-paid jobs for the country’s residents stimulates the local economy. According the Richard Cayne of Meyer International, “A lot of these places aren’t much more than little rocks so, all of a sudden, everyone has a decent job. It’s pretty major for them.”

Not only that, added Richard Cayne, “you also have an influx of talented labor moving there to hold the top roles in the financial departments and other highly-trained positions.” This might include private bankers, salespeople, IT experts, lawyers, accountants, security engineers and more. Now, you have the sizable incomes of these expats being poured into the local economy and people needed to provide all the services required by wealthy foreigners as well. This might include household staff, international schools and more.


Taxation for Residents and Non-residents

The draw for foreigners to invest via these jurisdictions is that there is no tax for non-residents but what about taxes for residents? Richard Cayne explained that, “There is no tax liability for any non-resident. However, for anyone living in the jurisdiction and depending on which jurisdiction they may have to pay income tax on their salary.”

For further information about offshore and other investment topics, Richard Cayne and Meyer International can be reached at (+66) 02 611 2561