At FinPeak advisers we are always asking ourselves how do we add value? There’s no one solution to this question. We do this in a combination of ways by embracing technology, acting in your best interest and focusing on your goals.
Below are some of the principles we stick to when helping you keep on track.
Cost-effective implementation – we are always looking for ways to save you money by constantly reviewing how we invest your money
Rebalancing – it’s always tempting to “let it ride” in bull markets and then be very conservative in bear markets which is why it’s vital that once you have built your portfolio that it’s reviewed and adjusted regularly. Below shows your portfolio’s asset allocation over the years if it was left unattended.
Asset allocation – getting this right is key to building your wealth and is ever so vital when it comes to retirement planning. Invest too conservatively and you may miss out on investment returns to help secure your financial future.
Spending and drawdown strategy – No one can control what happens in global equity markets but what we can help our clients with is the right spending and drawdown strategy. Understanding your expected spending patterns and ensuring you have an appropriate investment and draw down strategy can ensure that we can assist in supporting your desired retirement lifestyle.
Behavioural coaching – This is probably better explained by thinking about this example. Looking at past performance may serve us well when we’re trying to pick a surgeon for the operation we are about to undergo. You wouldn’t want to pick one that has a history of losing patients!
When it comes to investing, looking at past performance may not exactly be the best approach. Think if you had invested all your money in shares just before the Global Financial Crisis (GFC) in 2008 after a record run in equity markets and then conversely decided to pull what money you had left and stayed invested in cash because equity markets had just lost over 50% of your money. You would have missed an opportunity to obtain the eventual returns that would have helped you recover your money and surpassed what you started with.
In other words, value add from your adviser is helping you look at bigger picture and staying with the game plan.