Financial planning advice - Financial planningOur StrategyLike most people we too do not believe that anyone can predict what any financial market is going to do in say the next six months or a year from now. Occasionally perhaps but not consistently or reliably, this is why financial planning is essential. . 
For years now people have been taught that buy and hold is the only way to invest as it is for the medium to long term and the market always out performs over the long term. This might have been so years ago but not today because any method to create wealth from investing has to involve avoiding suffering dramatic losses that the market will deliver every so often. These losses can be devastating for the investors that try to ride them. It can take years to recover, looking at the American market, which has had 13 down trends (bear markets) since 1929 up until 1997 excluding this recent one. The average time to breakeven is 5.2 years although the 1929 crash took a whopping 25 years to breakeven. To illustrate the recent one if you had been invested in the American Nasdaq Composite in the peak of March 2000 to the low of October 2002 you would have lost 74% in a period of just over 2 years. Today (June 2006) you would still be down around 57% and 4% over the past 5 years. From the October low of 2002 you would need a return of 285% to put you back to where you started. How long do you think that would take?
Our strategy is simple we try to have a good spread of investments in the right assets at the right time. In addition to this will access what we believe to be some of the best investment funds available. With this strategy we hope to benefit from the good times and to be more cautious when times are unpredictable. Let us help you start making your investments more profitable by completing our let us help investment form. We will be able to provide you with a no obligation assessment of your existing investments. |
