Swimming With Sharks: How to Bulletproof Your Finances for a Certain Future

This book aims to provide a guide for individuals seeking to safeguard their finances in an uncertain financial world.
It is designed for time-poor individuals who want straightforward, actionable advice on managing their personal finances without falling victim to pitfalls commonly seen in the financial services industry.

Who are the Sharks? The financial services industry, including banks, financial advisors, and product providers, can sometimes work more for their benefit than for the client’s.
Hidden Fees and Costs: Many financial products carry hidden fees that are not always obvious, resulting in diminished returns.
Conflicts of Interest: Financial advisors may prioritize products that earn them commissions, rather than focusing on what is truly best for the client.

Step 1: Understand the Basics
- Take control of your financial education. Understand the difference between assets, liabilities, investments, and debt.
- Avoid overly complex financial products that you do not fully understand.
Step 2: Build a Strong Financial Foundation
- Emergency Fund: Establish an emergency fund with at least three to six months of living expenses.
- Debt Management: Focus on paying down high-interest debts, such as credit cards, before engaging in more complex investments.
Step 3: Invest Wisely
- Diversification: Spread your investments across different asset classes to reduce risk.
- Long-Term Focus: Invest with a long-term perspective rather than trying to time the market or chase short-term gains.
- Low-Cost Investments: Opt for low-cost index funds or ETFs to minimize fees and ensure greater returns over time.

Financial Products to Watch Out For:
- High-fee mutual funds, complex insurance products, and managed funds with high commissions.
- Always ask financial advisors about their fee structures and whether they are paid commissions for recommending certain products.
Retirement Planning:
- Ensure that you are contributing enough to your retirement accounts (e.g., superannuation) and consider strategies like salary sacrifice to boost contributions.
- Avoid withdrawing from retirement funds early, as it can have long-term impacts on your financial security.

DIY Financial Management:
- With the right tools and knowledge, many people can manage their finances without relying heavily on external advisors.
- Learn how to read financial statements, and use online tools and resources for budgeting, tax preparation, and investment management.
Choosing the Right Financial Advisor:
- Look for advisors who offer fee-for-service models rather than commission-based compensation.
- Ensure they have the right qualifications and experience, and that they are working in your best interest (fiduciary duty).

Insurance:
- Ensure you have adequate insurance coverage for your home, health, and income protection.
- Avoid policies with excessive premiums or unnecessary riders.
Estate Planning:
- Create a will and ensure that your estate plan is up-to-date to protect your assets and ensure they are distributed according to your wishes.
- Consider setting up trusts if necessary, to manage wealth transfer and protect against taxes.

Taking Control: The ultimate goal of the book is to empower individuals to take control of their financial future by educating themselves, avoiding financial traps, and seeking the right advice when necessary.
Final Thoughts: Financial success is achieved by understanding the basics, being wary of the sharks in the financial industry, and making informed decisions about your money.