Sunday, June 11, 2006

Financial Planning - Is It Time For You To Actively Reallocate Your Assets?

Financial Planning - Is It Time For You To Actively Reallocate Your Assets?

Hi! Have you taken into account recent developments that may affect your wealth building goals?

I prepared this note for my GET BETTER ezine subscribers and got to thinking that perhaps readers of my blog will also benefit from it. Those of you who have taken wise, active steps to build your own retirement nest egg, in particular, might appreciate this quick rundown of what's happening in the global investment arena.

You're probably aware that inflation woes in the US are on the rise. This suggests that new Fed chairman Ben Bernanke will continue to raise US interest rates in an effort to tame that awful price-eroding monster!

A great article to read on the subject is found here.

An even simpler explanation of why inflation is such an important factor is found here.

Whether or not you're in the US now is immaterial. Whither America goes, the rest of us are sure to follow.

At least as far as interest rate strategies are concerned, that is!

For instance, in my own country of Malaysia, I've had to sit down with many of my elite consulting clients and discuss the possibility of equities (read: stocks) tanking. Furthermore, with interest rates having risen and looking set to waft higher still, the outlook for bonds is also rather grim. (For those who don't know this... yet, bond prices and interest rates tend to move in opposite directions. So, if interest rates go up, bonds are expected to fall.)

Of course, some of my clients are in a position to ride the expected drops and can thus take advantage of the anticipated lower prices. For a clear explanation of why this is a good idea for some people at the right times of their lives, read this piece.

And if you're interested in reading about how capital market volatility can be strategically harvested for decent long-term investment returns, curl up and read this lengthy article.

For now, I'm urging those of my clients who are in no position to handle too much volatility to intelligently reallocate their funds away from bonds to money market instruments, which tend to be stultifyingly boring investment vehicles with one huge redeeming quality:

They provide great stability at a time when investors are rushing away from the anticipated storms in the equity (stock-related) and fixed income (bond-related) markets.

I suggest you take a careful look at your portfolio, the underlying economic currents in your country, whichever it might be, and the immensely pertinent actions and reactions of the most important economy on the planet - Uncle Sam.

Happy long-term wealth accumulation.

By the way, if you'd like to join others who have opted to have me work with them, please take the time to decide if this option is right for you...

You may begin doing so by asking this vital question:

Are you able to spend thousands of dollars but much prefer to only invest hundreds?

If so, I've launched a 'lite' version of my elite life planning consulting package. This shorter, online-based version lasts a whole three months, and focuses on the three core life planning areas of personal finance, goal-setting and time management.

The price of this 13-week email- and online-based consulting package is less than a tenth of my regular consulting one.

If you're interested, drop me a quick email to
(or simply copy-and-paste
into a fresh email) with

'Rajen, please tell me about your new consulting package',

in your subject header.

Warning: This service is NOT for everyone.

Please only write to me about it if you are 100% serious about joining this programme.

Thanks. Stay well.

Warmest regards,


Rajen Devadason is CEO of RD Book Projects and its sister company RD WealthCreation Sdn Bhd. He lives in sunny, peaceful Malaysia with his gorgeous wife Rachel. He's a Malaysian Securities Commission-licensed financial planner, a life planning consultant, a professional speaker and a serial author... which probably explains why he's so exhausted! Some of his books are available here, and, if you're interested, here are some quotations he reckons are accurate, bold or cool.


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