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Invest Blue is passionate about helping people reach their goals and dreams by providing quality, tailored financial advice.

Belief 6: Ongoing Wealth Management activities

We believe that once a Wealth Management strategy is implemented, it is not a “set-and-forget” proposition. To live your best possible life, your Wealth Management strategy will require ongoing monitoring and assessment, in partnership with you and your adviser to continue to ensure your strategy meets your needs.

A key part of any Wealth Management strategy is reviewing your strategy and portfolio periodically against your objectives and adjusting accordingly. As your goals and objectives change and your risk profile or time horizon changes, it is important to assess your Wealth Management strategy and make any required adjustments, to ensure we continue to maximise the probability of you achieving your goals and objectives, within your predetermined tolerance to risk.

An integral component of the monitoring and review process is providing support to you throughout the market cycle, to manage your emotions through the ups and the downs of the investor sentiment cycle in order to ensure you don’t make the wrong decisions at the wrong time.

A recent Vanguard study estimates that an Advisor adds about 3% of “advisor alpha” annually. That is, working with a Financial Advisor adds an average of 3% to a client’s portfolio over. The majority of this value is added during periods of heightened greed and fear in the markets when Advisors can step in and, even when their emotions are driving them to do something else. About half of this extra return comes from the behavioural coaching, that advisors routinely provide to their clients.

Role of your adviser in building a long-term partnership:

We believe Financial Advisors who bring a process-oriented approach to a Wealth Management plan, are helping to shape their clients’ behavior. Systematic reviews, periodic rebalancing, proper asset location and spending plans are all examples of behavioral coaching. These and other strategies help clients make financial decisions in an ordered, rational fashion, rather than putting them in a position to react to news about the stock market or the economy.

Behavioural finance teaches that people can make costly mistakes when it comes to financial decisions due to emotional biases, cognitive errors, and a lack of discipline. As such, your adviser will work with you to be able to understand how these can get in the way of financial success and intervene as a behavioural coach where required show and coach you towards a correct course that realigns with your goals and objectives.

What’s your philosophy?

 

Once you have established your Wealth Management strategy, you prefer a more “set and forget” approach and do not believe that having an ongoing partnership with an adviser increases your chances of achieving your objectives. You are not prepared to pay for ongoing adviser support. Once you have established your Wealth management strategy, you believe that having an ongoing relationship with an adviser, to monitor and review your situation and ensure you’re making the right decisions at the right time will increase your chances of achieving your goals. Having this support and advice is sufficiently important to you to justify paying for this service.

 

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