How can I limit exposure to exchange rate fluctuations on my UK pension now I am living in the US?
In our new FAQ feature, Chris Thornton, Country Manager in the US, answers a frequently asked question about the relevance of currency and exchange rates in retirement planning.
Active or Passive Investment? Which is Best for Your Retirement?
It's funny to think that our investing decisions might be coloured by the way society views certain words – i.e. 'active' is good, 'passive' is bad.
But when it comes to retirement investing, the decision just isn't that binary. And attempting to make a decision between passive investing versus active investing is likely to be a false dichotomy as elements of both should be utilised together to form a part of a successful retirement strategy.
Here we take a look at these retirement investment approaches and how they might form part of your retirement investment planning.
Financial Advice the Best Insurance Against Emotional Investing
For a long time economists formulated their theories on the assumption that investors behave rationally and make explicable decisions. In fact, this belief helped underpin the very notion of the Efficient Market Hypothesis; a theory developed by Eugene Fama (University of Chicago) and Ken French (MIT), which states that share prices reflect all information which is readily available
Nowadays, even the proponents of EMH know that randomness and irrationality are constant features of investor behaviour, if not the market as a whole. However, such behaviours are likely to prove detrimental to an investors' long-term financial goals and are precisely why a wealth manager or financial advisor should be considered as an essential part of the investing journey. Professional advice brings discipline and guards against the kind of irrational and emotionally-motivated investment decisions that have the ability to undermine even the best-laid plans.
Coming to Terms with Risk in your Retirement Planning
An independent financial advisor and wealth manager can help you decide upon an investment strategy and asset allocation that aligns with your time horizon, retirement goals and risk tolerance wherever you are in the world and wherever your assets are situated. Blacktower (US) LLC brings together the management of UK and US retirement assets in one holistic provision.
Here we examine the nature of risk, particularly in relation to "conservative" investments and shorter time horizons when planning for your retirement.