Frequently Asked Questions (F.A.Q)
Lifetime financial success is a chain of correct decisions made over multiple decades. Money is more emotional than intellectual. Financial Advisers strive to ensure their clients behave themselves to wealth and don't partake in financially destructive behaviour (this is my life's calling). I cannot enable my clients to act inappropriately under my caring stewardship. The families I look after are my life and while they're under my caring guidance I will act with the highest level of professional integrity.
It'll be natural that during our lifetime relationship you'll ask questions usually fuelled by your emotions and also the financial media, who are hell bent of grabbing your attention and never sharing wisdom and considerate assistance. On this page I will try and present my answers to various questions you may have during our time together.
Q: Stock Market Highs - Taking Profits. Shouldn't we 'bank' some of these profits?
A: As a multi decade investor you'll see frequent temporary market highs. I appreciate your concerns. As your lifetime Financial Adviser it's my role to ensure you behave correctly during all market cycles. You're correct that the market is at a high point, however it's impossible to tell what direction it'll continue in. Market volatility is always expected, ust to recap volatility is the unpredictability of market prices both up and down over a long term rising trend line. Trying to 'time markets' or 'taking profits' has never been a successful multi decade investment strategy. lso each year the general stock market has an intra-year decline of approximately -14% (US Stock Market Source HERE Page 13), so this will likely happen again during every year. However we cannot predict this with any accuracy. The financial media will be waiting for this time to declare the world will be ending, as they do at every opportunity. personally will not be 'banking' any profits at this time, so therefore would never allow my client's to make this mistake. If the markets do retract (which is very likely and expected) not acting now would not be a mistake. As we need to have a consistent strategy rather than an impulse reaction. Your portfolio is globally diversified and historically appropriate for the coming decades. ore importantly your financial plan has be crafted to ensure you achieve your important lifetime goals.
Q: This asset class is doing better than this one, shouldn't we move to the better performing asset?
Q: Why am I paying you when your advice is 'do nothing'?
A: Because you wouldn't have come to this conclusion without me. Financial success is doing the simple things consistently. Money is like a bar of soap, the less you touch it, the more you have.
Q: If your advice is buy hold an forget why do I need to continue with you as my adviser?
Q: A friend of mine (my brother in law, my hairdresser, my Great Uncle Keith) tells me he's got a (fill in the blank) return on his money over the last (fill in the blank) period of time. Shouldn't I invest like him?
A: Having worked in money my entire career, i've heard more get rich quick schemes/ideas than most. I've also heard stories of financial destruction and misery in equal amounts. I have no idea what they're invested in, I have no idea what their life goals are, I have no idea if they're on track or not. People talk a lot of nonsense, this is human nature. We invest the life savings of our families carefully and more importantly provide tailored financial planning and behavioural coaching throughout all market cycles.
Q: I'm a passive investor so therefore don't need to work with an adviser?
Q: The market has declined and the papers/media/radio say I should be petrified? How are you reacting?
Q: I'm very concerned about the future and the recent event/announcement/policy/leader/change that's been announced? How are you managing my portfolio 'accordingly?
A: Impulse reaction, strategy.
Q: Gold/Commercial Property/Wheat/Fairy Dust has surged this morning/last week/last year shouldn't we invest in this asset class that's shooting the lights out? The media is saying we should invest in this idea?
Q: Why would I use a Financial Adviser when I can just use a 'robo advice' service, which is low cost.
A: To someone who's spent his entire career sitting in private rooms advising families about their life savings. The proliferation of DIY investment platforms (Robo advice, Robo's) did not sit well with me. I knew they would continue to provide clients what they 'wanted' and certainly not what they 'needed'. An algorithm is perfectly placed to reflect back at you your financial illiteracy, money misconceptions, fears and more importantly your misjudgments. As caring human advisers we're experts in human misjudgment. Yes we're more expensive than a so called 'robo' however we do not compete with robos. We compete with innate human destructive biases. Our main role is managing people, the money is secondary and dare I say an infinitely easier endeavour. Managing money is easy if you're in full control of your biases and misconceptions, which you're not. My clients understand the phase 'penny wise, pound foolish'. Please don't ever insult me and compare our fees to a robo. It's a little like comparing the cost of an electric drum machine with a world class drummer. Or further still a microwave with a chef. Multi decade, multi generational wealth creation and creative financial planning is a hyper complex task, seek a caring, considerate professional to help handle the heavy lifting for you. Information is abundant, wisdom is rarely served.