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“Holiday Crisis Solved: How to Handle a Lost or Stolen Debit Card”

What to Do If You Lose Your Debit Card While on Holiday

Losing your debit card while traveling can be a nightmare. Whether it’s stolen, misplaced, or simply left behind at a café, the sudden loss of access to your funds can leave you feeling vulnerable—especially in an unfamiliar place. However, acting quickly and methodically can help you minimize financial risks, secure your account, and find alternative ways to access money.

Here’s a detailed step-by-step guide on what to do if you lose your debit card while on holiday.

1. Stay Calm and Retrace Your Steps

Panicking won’t help, so take a deep breath and think back to where you last used your card. Check your wallet, bags, hotel room, or any recent shops or ATMs you visited. Sometimes, cards are simply misplaced rather than stolen. If you’re sure it’s lost or stolen, move to the next steps immediately.

2. Contact Your Bank to Block the Card

Time is critical—the sooner you report the loss, the lower the risk of fraudulent transactions.

  • Call your bank’s 24/7 emergency hotline (save this number before traveling).
  • Provide your account details and request an immediate card freeze or cancellation.
  • Ask if any recent suspicious transactions have occurred.

Many banks allow you to block your card via their mobile app, which is faster than calling. If you don’t have international roaming, use Wi-Fi to access online banking or ask a local shop/hotel to borrow a phone.

3. Monitor Your Account for Fraud

Even after blocking your card, check your account for unauthorized transactions. If you spot any:

  • Report them to your bank immediately—they may reverse fraudulent charges.
  • Change your online banking password for extra security.

If your bank offers instant transaction alerts, enable them before traveling to detect fraud early.

4. Arrange a Replacement Card or Emergency Cash

Ask your bank about:

  • Emergency card replacement – Some banks can courier a new card internationally (though this may take days).
  • Temporary virtual cards – Useful for online purchases if your bank supports digital wallets (Apple Pay, Google Pay).
  • Emergency cash withdrawal – Certain banks partner with global networks (like Western Union) to provide emergency funds.

If you’re traveling with a companion, consider transferring money to their account temporarily.

5. Use Alternative Payment Methods

While waiting for a replacement, rely on:

  • A backup travel card (always carry a second card from a different account).
  • Cash (withdraw extra early in your trip as a precaution).
  • Prepaid travel cards (load funds before traveling).
  • Mobile payments (if your phone supports contactless payments).

6. File a Police Report (If Necessary)

If you suspect theft, file a report at the local police station. Some banks or travel insurance providers require this for fraud claims. Keep a copy for your records.

7. Prevent Future Issues

To avoid this situation again:

  • Carry multiple payment options (two cards + cash).
  • Use a money belt or RFID-blocking wallet to deter pickpockets.
  • Store bank contacts securely (in email or a password manager).
  • Enable transaction alerts for real-time monitoring.

Final Thoughts

Losing a debit card on holiday is stressful, but quick action can prevent financial loss. By staying calm, blocking the card immediately, and using backup funds, you can minimize disruption and continue enjoying your trip. Always prepare for the worst—carrying multiple payment methods ensures you’re never left stranded.

Safe travels, and may your next trip be hassle-free!

The Benefits of Having Two Debit Cards

Carrying two debit cards while traveling provides security and convenience. If one card is lost, stolen, or blocked, you’ll still have a backup for purchases and withdrawals. It also helps avoid issues like ATM declines or foreign transaction limits.

Additionally, you can separate expenses—using one card for daily spending and another for emergencies. Some banks offer better exchange rates or lower fees on specific cards, so having two allows you to optimize transactions.

With mobile banking, managing multiple cards is easy. Dual debit cards ensure financial flexibility, reducing stress during trips. Always keep them in separate places for extra safety!

The Benefits of Having a Travel Card

A dedicated travel card makes trips smoother and more secure. Unlike regular debit cards, travel cards often offer competitive exchange rates, low foreign transaction fees, and multi-currency support—saving you money on conversions.

If lost or stolen, travel cards can be frozen instantly via an app, protecting your funds without affecting your main bank account. Many also provide emergency cash replacement and 24/7 support.

Preloaded with a set budget, travel cards help control spending and avoid overspending. Some even offer rewards or insurance perks. For worry-free travel, a travel card is a smart financial companion.

Join Wise Here

https://wise.com/invite/dic/roberts10486

 

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Your investing risk profile and what it is.

Written by R. A. Stewart

Your risk profile is the level of risk you can take with your investments based on your personal circumstances and your timeline.

The number one question to ask before deciding where to invest your money is, “Will the loss of my capital affect my lifestyle?”

Here is an example of how this may occur. 

Suppose you are saving for a car and you decide to use an online investing platform such as sharesies or robinhood to save for that car. You also decide that you will invest your money in growth funds and your savings are going well for a while and just when you are a month away from  purchasing your car, the market takes a dive. (as it has after Trump imposed tariffs on imports).

Your planned purchase of that car now has to be put on hold which has affected your lifestyle.

On the flip side of this is that you can purchase more unit trusts than previously so that when the market rebounds your savings will grow faster.

There are three options when investing in managed funds; growth, balanced, or conservative. 

Growth funds have the most potential to grow your money but they are also the fund with the most risk.

Conservative funds are the safest option but they are also the least profitable.

Balanced funds are a combination of growth funds and conservative funds.

Your risk profile will determine where you are going to invest your money and this is dependent on when you need the money.

This can be classified into any one of three categories:

  1. Long-term money
  2. Medium-term money
  3. Short-term money.

It is possible to fall into more than one category as an investor depending on when you need to access your money.

For example: Your retirement fund if you are young is classed as long-term money, but your rainy day fund is short-term money.

Long-term money is money needed after five years.

Medium-term money is money needed between 1-5 years

Short-term money is money needed within a year.

Long-term money may be money saved for a house-deposit or your retirement.

Medium-term money might be money being saved for an overseas holiday or a vehicle.

Short-term money might be money being reserved for unexpected bills which crop up or an overseas holiday you intend to take within twelve months.

There are so many investing apps available these days that setting something up for a specific savings project is a simple process.

The current share market falls should not be much of a concern to investors who are in the correct type of funds. Your financial plan has to consider the worst case scenario of a share market crash. Hopefully, a 1987 Black Monday type of crash will not happen.

About this article

This article is of the opinion of the writer and may not be applicable to your personal circumstances, therefore, discretion is advised. You may use this article as content for your blog/website/ebook.

Check out my other articles on www.robertastewart.com

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What Is an Investor’s Risk Profile? (And Why It Matters)

Factors which determine your Risk Profile:

Written by R. A. Stewart

Your risk profile is the amount of risk you are advised to take with your investments. There are many factors which determine your risk profile with the main one being whether the money you are investing is needed in the short term, medium term, or long term. 

Short term is when you need the money within 12 months

Medium Term is when you need the money within 5 years

Long term is when you need the money in more than five years time

Here are the main factors in determining your risk factor:

Factor 1: Your age

Young people have one thing in their favour which the older ones don’t have and that is time. The young ones have more time to recover from financial setbacks such as a share market crash, a job loss, or whatever, therefore are about to invest in growth funds which can be volatile. Older people need to be a little more conservative. New Zealand financial advisor Frances Cook has a formula for working out what percentage of your portfolio should be in shares; it is this: subtract your age from 100. Even if you are in your twenties that does not mean you should be reckless with your money and invest into some kind of risky venture. 

Factor 2:Your health

Your health is a major factor in determining your risk factor. If you have a health condition which requires or may require expensive medical treatment in the future then investing in growth funds may not be your best option because you do not want to lose your money just when you need it. This does not mean that you should not invest anything in growth funds but just not most of it. It may be a good idea to set up a bank account for those medical bills.

Factor 3: Your Personal Circumstances

Your own personal circumstances need to be taken into account. If you are single with no commitments then you will be able to take more risks with your money than someone who is married with children.

Factor 4: Your Debts

Your debts are a big factor in what you should do with your money. There is no point in investing your money at 5% interest when you are paying 15% interest on your loans. People with debts have a responsibility to pay off their own debts and need to prioritise that before turning their attention to investing. 

Factor 5: Your Temperament

Your temperament is a factor. If you are going to lose sleep at the thought of losing your money; something which can happen if you are investing in the share market, then going for more conservative funds is better for you but when it comes to long term investing such as your retirement fund then investing too conservatively will mean that you will likely end up with a lot less money in the kitty when you retire.

About this article

This article is of the opinion of the writer and may not be applicable to your own personal circumstances, therefore discretion is advised.

You may use this article as content for your blog or ebook. Feel free to share this article with others.

www.robertastewart.com

“Dreaming of retirement but worried you haven’t saved enough? Retire With Little Money reveals practical, proven strategies to build a secure future—even on a modest income. Learn how to maximize Social Security, downsize smartly, generate passive income, and stretch your savings further with frugal living hacks. Discover low-risk investments, side hustles for retirees, and government programs that can help. Whether you’re decades away or just a few years from retirement, this guide shows you how to make the most of what you have. Don’t let a small nest egg hold you back—start planning your stress-free retirement today!“*

https://robertalan.gumroad.com/l/sdzvl

 

 

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The Cost of Financial Illiteracy

Written by R. A. Stewart

There is a cost to financial illiteracy and this cost can be passed down to generations and society. Financial illiteracy leads to poor decision making, debts, and missed opportunity for wealth building. 

  1. Poor choices

Financial illiteracy leads to impulse spending, living beyond one’s means, which leads to financial problems. All of this leads to borrowing which in turn leads to debt. Such people are often vulnerable to loan sharks which leads them to a cycle of debt.

Not surprisingly, these people have no savings, therefore, are caught out when some unexpected bill arrives such as an appliance breaking down, or the car needs fixing.

  1. Increased Debt and Financial Stress

Being unable to pay bills on time will lead to financial stress and mental health issues. It will also lead to relationship issues as lenders are sometimes family members who lend money, often with no interest attached may not see their money again. The borrower will sometimes use the excuse, “I did such and such for you”, in order to squirrel out of repaying the loan. This leads to resentment on the part of family members.

Smart money managers will not borrow for consumable items. “If you don’t have the money, you don’t buy it” is a good rule to live by”.

  1. Missed Investment opportunities

People with no financial literacy will not invest their money and therefore miss out on the opportunities to increase their wealth.  They will leave their money in a personal savings account which pays little interest which does not even cover the cost of inflation. As far as retirement goes, they have little savings to fall back on in later years.

  1. Vulnerability to Scams and Fraud

Financially illiterate are unaware of the red flags which are common in scams, therefore, are vulnerable to be taken in by them.

  1. Higher costs for Financial Services

A financially illiterate person will choose financial services and insurance not applicable to their needs or accept advice which is not compatible with their personal circumstances.

  1. Impact on Future Generations

Parents who are not financially literate may pass on their traits and attitudes to their children, passing on their poor financial skills to the next generation. This could also mean that they are unable to contribute to their children’s education, limiting future opportunities.

  1. Health and Lifestyle Consequences

Poor financial choices can also lead to poor health outcomes. It can also inhibit your ability to purchase a home, start a business, or pursue higher education.

  1. Limited LIfe Choices

Lack of financial skills will inhibit your ability to enjoy a more fruitful life. If you are not living within your means then overseas travel, further education, and starting a business will all be out of reach. Certainly, people who have no savings whatsoever are not fit to be in business because if you cannot even manage your own money then the lack of financial management will mean certain failure for the business.

“Financial literacy is not an expense, it’s an investment in your future.”

About this article

You may use this article as content for your blog/website, or ebook. Read my other articles on www.robertastewart.com

The content of this article is of the opinion of the writer and may not be applicable to your personal circumstances, therefore discretion is advised.

Retire on a Shoestring

“Retire with Little Money” is your guide to achieving financial freedom, even if you don’t have a large retirement fund. This practical ebook reveals creative strategies and smart budgeting tips to help you retire comfortably on a modest income. Learn how to cut unnecessary expenses, boost your savings with side gigs, and make the most of the resources available to you. With easy-to-follow advice and real-life examples, this book shows you how to build a sustainable retirement plan without relying on a hefty nest egg. Start planning today, and discover how you can retire sooner than you think!

 

https://robertalan.gumroad.com/l/sdzvl

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3 Factors which determine your investment strategy

ABOUT THIS ARTICLE

Reaching your financial goals is not just about saving money; it is about investing your savings to help grow your nest egg. Where you invest your money can help speed up the process of saving because the capital gains on your savings can help you to reach your savings goals earlier. There are three factors which determine where you should invest your savings. This I discuss in further detail.

The information here is of the opinion of the writer and does not constitute financial advice. If you require financial advice see your bank manager or other qualified professional.

3 Factors which determine your investment strategy

You may be wondering what is the right investment strategy for you, but without knowing anything abut you, any advice on which investments are right for you may in fact be the wrong ones. There are basically three factors that determine which are the right investments for you, they are:

  1. Your age
  2. Purpose for the money
  3. Your risk profile

Starting with your age. It would be rather silly of you to invest all your money in growth funds if you are aged 65 because if the market takes a dive such as was the case during the 1987 share market crash and to a lesser extent, the GFC during the early 2000s you have less time to recover from these setbacks whereas the young ones have time on their side. 

Then decide whether you require the money in the short term, medium term, or long term.

Short term would up to a year.

Medium term is 1-5 years

Long term is longer than five years

Short term expenses would be, a bank account for emergencies, a holiday within a year, dental expenses, or t pay for the kids schooling for a year.

Medium term would be savings for a car.

Long term would be your retirement fund, saving for a house deposit, or saving for the trip of a lifetime.

Your risk profile is a determining factor in where you invest your money. If the thought of the share market taking a dive will give you sleepless nights then investing growth stocks in the share market is not for you. A better option would be managed funds where you will be given a choice between growth, balanced, and conservative funds.

It is important not to get into debt for there is a cost to debt and that is interest. Interest adds to the cost of goods bought with borrowed money, and this adds up to a fortune during a lifetime of borrowing for consumables. This is called bad debt because the value of the item declines over time.

There is such a thing as good debt though and this is your first home because the value of the property increases during the lifetime of the loan but even this is not always a good option for some people if you live a kind of transient lifestyle. 

“Everyone is to their own,” so only you know what makes you tick, so your personal circumstances are the determining factors which govern where best to invest your savings.

You must do your homework before you invest in anything, whether that is the share market, managed funds, or gold. There is so much information available on just about everything, and that includes finance. It is just a matter of learning the ropes and having a financial strategy which suits your personal circumstances.

www.robertastewart.com

ABOUT THIS ARTICLE

Most people are able to save money but having goals and selecting the right investments for your savings can help increase your assets and enable you to reach your goal faster. For finance related articles, visit: www.robertastewart.com

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Share market falls on the back of Trump Tariffs

Markets tumble

Written by R. A. Stewart

The markets have taken a tumble after President Trump’s tariffs have started a trade war.

The newspapers have reported that Kiwisaver balance will be affected on this. This is stating the obvious. Kiwisaver balances may have dropped, but a lot of people are decades away from retirement so how the markets are performing in 2025 is not going to affect how much they have in kiwisaver when they retire in 2035 and beyond.

It all boils down to selecting the right fund for your risk profile. Money invested falls into one of three categories. Short-term money, medium term money, or long-term money depending on when you are going to be needing that money.

Other factors which come into it are your age, health, and commitments.

The share market goes up and down and the recent (March 2025) tumble is mainly due to the tariffs which President Trump has imposed on goods from certain countries, namely steel. 

Losses are only on paper, but investors who react to recent events and change to conservative funds will lock in those losses and miss out on the gains when the markets rebound. 

The United States will have a new President in four years time, and it certainly will not be Donald Trump in charge then so the markets will certainly bounce back then, if it had not prior to that.

Changing to conservative funds is not the only way to lose during a market slump. The others are to stop contributing to your retirement fund or if you are already retired, make withdrawals from kiwisaver.

With everything being said, it is not the current market slump which will determine how much your retirement portfolio is worth when you retire but how you react to market volatility and that is all down to the choices you make. 

Here is a list of choices which will affect your kiwisaver balance when you retire:

  1. Changing from a growth or balanced fund to a conservative fund.
  2. Stop contributing to your retirement fund.
  3. Withdraw money from your kiwisaver.
  4. Chopping and changing from one type of fund to another.

No one is going to reach the retirement age and regret that they made contributions to their retirement fund. Ask yourself this question, “Will my future self thank me for investing my money instead of wasting it?”

Your retirement fund can only be accessed when you reach the retirement age, therefore you need an alternative source of funds to cover any future financial needs. There are lots of online investing platforms available where you can invest a minimal sum of money regularly and still have easy access to your funds. If you are from New Zealand or Australia, sharesies is a good option for you. This gives you easy access to the share market.  Check out Sharesies Here

About this article

The opinions expressed in this article are of the writer’s own opinion and may not be applicable to your personal circumstances, therefore discretion is advised. 

Disclaimer: I may receive a small commission if you join sharesies.

You may use this article in full or part as content for your blog or ebook. Check out my other articles on www.robertastewart.com

Posted on

How to buy Bitcoin

How to buy Bitcoin

Written by R. A. Stewart

The decision to purchase Bitcoin is a decision which should be made after careful consideration with the main one being, “Can I afford to lose this money?”

Buying Bitcoin is speculation rather than investing. It is a bet that the price will increase in the future, therefore, money used for the purchase of Bitcoin or other cryptocurrency should be money which you can fully afford to lose.

The first thing you will need is to register for a bitcoin exchange. The ones I use are Coinbase, Blockchain, and Kraken. There are a lot of others such as Etoro, Swyftx. It is best to do your research to find one which suits you.

Etoro has a minimum transaction of $1,000 which is too much. I prefer to drip feed my money into these things. The problem with putting a lump sum into Bitcoin is that the price may be high when you buy your bitcoin and then it drops and your original investment is worth a lot less; if you are drip feeding your money into Bitcoin then you will at least have purchased Bitcoin at the lower price if it drops in value.

It is important to point out that Bitcoin is volatile, therefore, you only invest what you can afford to lose.

The signing up process is simple. You need a username and password. You also need some form of ID to upload, this is either a driver’s license or a passport. Then you will be asked some questions, one will be “What is the source of your funds?”

Once you have completed the sign up process you are set to go. You will be asked to type in your card details. This should be a debit card rather than a credit card so that the money which is on your card is your own. Never purchase cryptocurrency on credit because the crunch always comes when it is time to pay it back and there is always the possibility that your Bitcoin balance if it drops significantly will be less the size of your debt.

It is about being responsible with your money.

Two factor signing in

When you sign in the Blockchain you will be sent an email to authorise the signing in. Coinbase will send you a text with a sign in code while Kraken is similar to Blockchain where you will be sent an email. 

It is important to stress that you should use a different email for your cryptocurrency from your normal banking. This is because scammers will try to trick you into giving you your personal information and you cannot always be sure whether the email you receive from your cryptocurrency exchange is really from them or a scammer, therefore type in the URL address of the website rather than clicking on a link.

Unfortunately there are so many different ways of losing money when buying cryptocurrency and being scammed is one of them. It is imperative that you exercise common sense and don’t believe everything that you are told about making money on bitcoin. This form of investing has such a short history that its future cannot be forecast with any degree of certainty. Best advice is to never invest money on bitcoin which you cannot afford to lose.

About this article

The information here is of the writer’s own opinion and experience and may not be applicable to your personal circumstances therefore discretion is advised. You may use this article as content for your blog/website or ebook.

Read my other articles on www.robertastewart.com

The Bitcoin’s Investor’s Handbook explains everything about Bitcoin.

Posted on

3 Factors which determine your risk profile

ABOUT THIS ARTICLE

Reaching your financial goals is not just about saving money; it is about investing your savings to help grow your nest egg. Where you invest your money can help speed up the process of saving because the capital gains on your savings can help you to reach your savings goals earlier. There are three factors which determine where you should invest your savings. This I discuss in further detail.

The information here is of the opinion of the writer and does not constitute financial advice. If you require financial advice see your bank manager or other qualified professional.

3 Factors which determine your investment strategy

You may be wondering what is the right investment strategy for you, but without knowing anything about you, any advice on which investments are right for you may in fact be the wrong ones. There are basically three factors that determine which are the right investments for you, they are:

  1. Your age
  2. Purpose for the money
  3. Your risk profile

Starting with your age. It would be rather silly of you to invest all your money in growth funds if you are aged 65 because if the market takes a dive such as was the case during the 1987 sharemarket crash and to a lesser extent, the GFC during the early 2000s you have less time to recover from these setbacks whereas the young ones have time on their side. 

Then decide whether you require the money in the short term, medium term, or long term.

Short term would be up to a year.

Medium term is 1-5 years

Long term is longer than five years

Short term expenses would be, a bank account for emergencies, a holiday within a year, dental expenses, or to pay for the kids schooling for a year.

Medium term would be savings for a car.

Long term would be your retirement fund, saving for a house deposit, or saving for the trip of a lifetime.

Your risk profile is a determining factor in where you invest your money. If the thought of the share market taking a dive will give you sleepless nights then investing growth stocks in the share market is not for you. A better option would be managed funds where you will be given a choice between growth, balanced, and conservative funds.

It is important not to get into debt for there is a cost to debt and that is interest. Interest adds to the cost of goods bought with borrowed money, and this adds up to a fortune during a lifetime of borrowing for consumables. This is called bad debt because the value of the item declines over time.

There is such a thing as good debt though and this is your first home because the value of the property increases during the lifetime of the loan but even this is not always a good option for some people if you live a kind of transient lifestyle. 

“Everyone is on their own,” so only you know what makes you tick so your personal circumstances are the determining factors which govern where best to invest your savings.

You must do your homework before you invest in anything, whether that is the share market, managed funds, or gold. There is so much information available on just about everything, and that includes finance. It is just a matter of learning the ropes and having a financial strategy which suits your personal circumstances.

www.robertastewart.com

ABOUT THIS ARTICLE

Most people are able to save money but having goals and selecting the right investments for your savings can help increase your assets and enable you to reach your goal faster. For finance related articles, visit: www.robertastewart.com

Posted on

Difference between good debt and bad debt

Good Debt and Bad Debt 

Written by R. A. Stewart

Do you know the difference between good debt and bad debt? One needs to be used with caution while the other is to be avoided like the plague.

First the basics.

When you are borrowing money you are paying for the use of that money and that is called interest. This adds to the cost of what the money is used for. Therefore, it is important that you save and use your own money if at all possible.

There are some things which it may not be possible to use your own money such as a student loan or a mortgage because these are major investments, however, most people will contribute a portion of the money needed such as a house deposit.

Good Debt

Listed below are things which are considered to be good debt:

A Student loan

Mortgage

An investment with a higher expected return

Good debt helps to build your wealth.

Listed below are things which are considered to be bad debt:

Bad debt

Vehicle

Household appliances

Veterinarian bills

Travel

Consumables

The reason why these are bad debts is because you end up with little or nothing for your money.

Bad debt does not contribute to your financial well-being, it is detrimental to it.

It is important to know the difference between an asset and a liability. An asset increases your wealth while a liability reduces it.

How to manage debt levels

Pay off debt as fast as possible

Avoid paying high interest rates for consumable items

Stay within your budget

If you don’t have the money you don’t buy it.

Build an emergency fund; this would be a separate bank account from your every day personal account. An emergency fund will ensure that you have money on hand for anything unexpected which crops up.

People with debt do not have any discretionary spending money. These people will probably disagree, but honestly; going on an overseas holiday when one owes money to someone is irresponsible and selfish. It is like giving the middle finger to your creditors.

One should avoid credit cards like the plague. These are for greedy and selfish people. A good money manager will not own a credit card, because to them, “debt” is a dirty word.

Learn to live within your means and to stay within your budget. Prosperity is a matter of choice. If you don’t have any plan for increasing your wealth then you choose not to be wealthy. I do know of many people like this who purchase a lottery ticket every week and that is their only hope of becoming wealthy.

Do not envy those who drive around in a fancy car and live in an expensive house. For all you know these people could be up to their eyeballs in debt. Just live according to your own means and let others do the same. 

To summarise

Good debt is when you borrow for an asset which has a payoff which makes it worthwhile paying the interest for the loan. Bad debt is when you borrow for something which has no lasting value.

About this article

You may use this article as content for your blog/website or ebook. The contents of the article may not be applicable to your personal circumstances, therefore discretion is advised.

Check out my other articles on www.robertastewart.com

 

“Retire with Little Money” is your guide to achieving financial freedom, even if you don’t have a large retirement fund. This practical ebook reveals creative strategies and smart budgeting tips to help you retire comfortably on a modest income. Learn how to cut unnecessary expenses, boost your savings with side gigs, and make the most of the resources available to you. With easy-to-follow advice and real-life examples, this book shows you how to build a sustainable retirement plan without relying on a hefty nest egg. Start planning today, and discover how you can retire sooner than you think!

 

https://robertalan.gumroad.com/l/sdzvl

Posted on

3 Things a Financial Advisor should not tell you

3 Things a Financial Advisor should not tell you

Written by R. A. Stewart

Having a financial advisor is one thing but at the end of the day it is you who has to make the decisions of where to invest your money. In other words; you must take full responsibility for your actions. You must also have the ability to discern whether a piece of advice is good, bad, or not applicable to your personal circumstances.

Here are some things a financial advisor should not tell you to do.

  1. Invest in cryptocurrency

Only money that you can fully afford to lose should be invested in bitcoin or other types of cryptocurrency. This is an extremely volatile investment with a short history, therefore it is hard to know where it is heading as far as the price of Bitcoin goes. Anyone who claims to know the future of Bitcoin is probably misleading you. It is likely that they are using data from Bitcoin’s history to predict its future but as they say, “The past is no guarantee of the future.”

Only discretionary spending money should be invested in Bitcoin. It will give you plenty of interest while investments which are for your material goals are growing as you continue to save for whatever it is you are saving for, whether that be a house deposit, car, education, or overseas trip.

  1. Invest your life savings in one company

There is a phrase for this and it is called, “Placing all of your eggs in one basket.” During the Global Financial Crisis of 2007/2008 some New Zealand investors lost their entire life savings after some high profile company collapses. Several finance companies were offering above average interest rates to attract investors and some people let greed get the better of them, but no one would admit to such a sin. Financial advisors who promoted these finance companies were scapegoats. It may be true that it is a mistake to advise someone to invest everything into one company but it is up to each and every investor to take responsibility for their own investment portfolio.

Diversification needs to be part of your financial vocabulary if it already isn’t. Diversification means you invest your money with different companies and across several asset classes. This minimizes risk. Ordinary Mum and Dad investors are able to drip feed small amounts of money into the markets these days with so many online investing platforms available. It is just a matter of choosing one or two of them which fits in with your investing strategy.

  1. Invest in growth funds when you are retired

Investing in growth funds is okay when time is your friend but not when it is your enemy because a market slump can affect your lifestyle if you are retired. This is because retired people are in the spending phase of their life and if the value of your portfolio is down when you need the money then you are accepting a loss. The young ones, however, do not need to panic because they have time on their side and do not need the money in a hurry. By the time they themselves retire the market will have had it’s ups and downs.

I am not saying that you should not have anything invested in growth funds if you are retired, but rather, it should not be money which you can ill afford to lose. It all boils down to how soon you may need the money keeping in mind that time is not your friend.

About this article

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