Are you Cheating Yourself With the Label “Conservative?”

In his work as a financial planning consultant, Richard Cayne of Meyer International occasionally meets people that, despite having a good amount of wealth, say that they don’t have use for the services of a financial planner such as himself. “What is their reasoning?” you might ask. The reason is usually that they consider themselves too “conservative” for investing and feel that it isn’t a safe thing to do with their money.

Though he’s not offended by this, it never fails to surprise him since he thinks that investing your money is the only safe thing you can do with it.

In the past, he has had conversations with people that consider themselves too conservative to invest. They often go something like this:

Conservative Person: “I’m a conservative person, I don’t invest my money.”

Richard Cayne: “So, what you’re saying is that you’d rather have your wealth dwindle away by erosion or inflation than try any investments at all?”

CP: “Well, no, not when you put it that way.”

RC: “Wouldn’t you rather buy some bonds or other low-risk financial products that will at least keep your wealth at the same level it is today?”

CP: “Well, okay, maybe I would.”

The moral of the story is that you can, should and need to be doing a bit more with and for your money that just leaving it in the bank – even if you want to be conservative.


Finances and the word “Conservative”

The funny thing is, according to Richard Cayne, that you’d think a person that considers themselves “conservative” would be doing everything they could to create monetary safety and protective measures for themselves, their family and their wealth. It’s not clear how the word “conservative” came to be associated with people that didn’t want to make provisions for their wealth at all.

A conservative person would certainly never go out and spend ostentatiously or carelessly, but you’d certainly think they’d want to protect what they have in any safe way possible, wouldn’t you?

According to Richard Cayne, “failing to make ample provisions in your financial planning to cover you for, at the very least, the amount that inflation will erode your wealth is not conservative; it is just foolish.”

He went on to note that the idea of being conservative, financially and in any other way, means planning and being prepared and proactive for any eventuality – especially one that is a definite – such as inflation and wealth erosion.

To learn more about low-risk investments, wealth protection and other finance topics, Richard Cayne and Meyer International can be reached at (+66) 02 611 2561.