We’re all individuals. When we sit down with new clients and start to get to know them we discover that their needs, while often similar to other clients, are always unique to their situation. It’s for this reason that the investment approach we take has to reflect the fact that people are different. We have found that people’s money needs generally fall into 4 buckets and a different investment approach is required for each need.
We ensure that cash is available for living expenses and emergencies. These funds will be secure and readily accessible and we avoid investments that typically experience large fluctuations in value. Don’t lose any of this money!
For those relying on their investment for cash flow, such as people in retirement or transitioning to new opportunities, we create an income stream to cover living expenses. We take into account existing sources of income, such as salary or government entitlements, and combine these with investments that focus on delivering consistent income to create a reliable cash flow so that the right amount of money ends up in your hands each month.
This portion of the portfolio is designed to create a regular income that can increase over time and not be too heavily impacted as investments go up and down in value.
This part of your investment provides a savings bucket for future expenses. We can invest in growth assets like shares and property. These investments do go up and down in value more often than the investments we’d have in buckets 1 and 2. Over time this bucket will deliver more growth with the aim being to generate a better return to combat the effect of inflation. We plan for these investments to be in place for a longer time, as they will experience volatility (that means they go up and down in value more often), however this is aligned with the less urgent need to access this part of your investment, because we’ve planned for short and medium term needs already.
The final bucket is all about wealth set aside for long-term options, goals or aspirations. Maybe even things you haven’t thought of yet. To dream a little! This time frame allows us to focus predominantly on investments that aim to produce long-term compound growth. If you’re investing for the long term then you may take sensible but greater investment risk with the potential to achieve a better reward.
The benefit of this investment approach is your investment solutions directly address the things that you’ve identified as being important to you. Your short-term cash flow has been anticipated and provided for with a high degree of certainty. Investments in growth assets, such as shares and property, which traditionally experience fluctuations in value, are given time to perform. Your investments are working towards helping you live a healthy, wealthy and happy life.
If you would like to know more about how to construct your investment approach to ensure your needs are met please contact me firstname.lastname@example.org