How We Help You

 

Our starting point is to accurately identify, quantify, and prioritise your goals. With clarity here we can move on to strategy development.

We have a strong focus on financial modelling and scenario analysis. In most cases we will build your strategy and then model the long term outcomes, stress testing and comparing different scenarios. At our presentation meeting we will take you through this modelling to ensure you not only have a strategy that will achieve your goals, but you understand why your strategy has been built as it has.

 

The above is an example of the scenario analysis we conduct for you. We can compare various strategy options and scenarios, consider changes to key inputs such as age at retirement, and build your perfect strategy. View a demonstration video here

 

Evidence Based Investing

 

The goal for any investor should be to earn the maximum return with the minimum risk. We help you manage and grow your wealth to ensure a secure and worry free retirement using an evidence based approach to investing. This approach consists of two proven investment insights:

  1. The majority of a portfolio’s return is determined by its Asset Allocation.

evidence based investing

 

The above table was produced by Vanguard. It illustrates their finding (confirmed by others), that asset allocation is the most important thing to get right when it comes to investment strategy. This table shows that for the 682 Balanced funds in Australia, 90% of the difference in performance from one fund to the next can be attributed to asset allocation, that is, the proportion of monies allocated to Australian shares versus US shares, versus property, etc. Stock selection and marketing timing made up the remaining 10%. Too many investors put all their energy into stock selection and market timing, missing by far the most important driver of return.

 

2. Most active fund managers fail to beat the passive market index.

 

The graphic above tracks the performance of large cap Australian share funds against the market index, the S&P/ASX200. It found that over 15 years, only 16.43% of fund managers successfully beat the index after fees. Put another way, 4 out of 5 active managers (that is managers that research and select individual stocks), did worse than the market as a whole after fees. That being the case, why risk active management for your mainstream share exposure? We ensure you take on the minimum risk necessary to achieve the future you are seeking.

 

What Will Our Services Cost?

 

There are two distinct phases in our working relationship. First we develop your strategy and then implement the recommendations. This typically takes several months.

We then work together to ensure the strategy continues to meet your needs, via our Financial Planning Service. A great quote we often share with new clients is “the best financial plans are like a novel forever in draft form, they adapt and evolve through time”. Our Financial Planning Service ensures your plan can adapt and evolve to fit the needs of your life.

Strategy Development and Implementation

At the conclusion of our initial meeting we will provide you with a quote for your Strategy Development and Implementation. This is based on the complexity of the work that you need prepared. As a guide, most projects would have a cost of $5,500 to $7,700.

Financial Planning Service

Once your strategy is up and running, in most cases we work together over time to support you in the achievement of your financial goals. Annually we meet for a Progress Meeting to review your progress, update goals, and ensure your arrangements remain optimal. Throughout the year we action strategy items, provide you with updates, and are available to you, whatever life events crop up. Through being enrolled in our Financial Planning Service, you gain the confidence of knowing all is taken care of on the financial front.

Financial Planning Service fees are calculated based on complexity and the level of funds under advice. Fees typically range between $5,000 and $11,000 per year, with a minimum of $3,300.

 

We are registered advisers with Australian Super, HOSTPlus, ART, Aware Super, Colonial First State, Netwealth and Macquarie Wrap. Where our advice relates to superannuation or retirement planning, we can apportion the fee and charge it to your super fund, if you belong to any of these funds.

 

If you need trusted financial advice to achieve your goals, we’re here to help. Book an appointment today, either via video conference, or if you’re local, come into our Essendon office.

 

 

*Fee rates detailed here are for new clients only. Existing clients may have different arrangements.