Plan4wealth
Investment Philosophy

How we invest your money

At Plan4wealth Pakenham, we craft your investment strategy to match your long-term financial goals. We consider your risk tolerance and investment timelines. We will select investments for you based on our investment philosophy. This philosophy guides our decisions. It’s how we manage your investments. 

Plan4Wealth's Investment Philosophy - Pakenham, AU

What is an Investment Philosophy?

An Investment Philosophy is a set of principles and beliefs that guide the strategies we use to invest your money.  It originates from our extensive training and research.  We have honed our investment philosophy over many years based on our experiences with both markets and clients. A strategy can change from time to time. But a core investment philosophy stays constant. It provides a foundation for all investment decisions.  

A summary of our Plan4wealth Investment Philosophy is set out below for your information.  

Core Investment Beliefs and Strategy

Plan4wealth’s investment decisions are based on several key principles: 

Focus

A long-term focus. This helps navigate short-term market volatility

It aims for sustained wealth creation over time. I.e. a get rich slowly approach.

Sequencing

Sequencing Risk vs Timing the Market

We hold contributions in cash initially 

Diversification

Diversification

We spread investments across various asset types and managers to mitigate risk. 

Liquidity

Liquidity

We prioritize assets that can be readily converted into cash.

Investment Managers

We use specialist investment managers

We leave specific stock selection to the experts.  We focus on overall investment strategies rather than individual stock ‘picks’

Core Approach

A core/satellite approach

We use a ‘core’ of lower cost index funds, then add various smaller ‘satellite’ holdings. We use these satellite holdings to profit from different market opportunities, mainly in emerging themes.

Lower Cost

Lower cost

We use passive index funds as a core part of the portfolio, to lower costs and enhance net returns.

Active vs Passive

Active vs Passive

We favour active managers for our satellite investments and passive investments for our core portfolios.

Market Cycles

Market cycles

We adapt the portfolio from time to time, in line with changing global market conditions.

ESG Investment

Environmental and Sustainable ("ESG") Investment Options

All other factors being equal, we will recommend an ESG investment option over non-ESG.

Separate Managed Accounts

Separately Managed Accounts

We prefer the transparency, tax efficiency and liquidity of separately managed accounts over managed funds. This enhances net returns.

Fixed Investment

Not all Fixed interest investments are created equal

We prefer direct ‘fixed interest’ investments to be straightforward and immune to capital fluctuations, such as term deposits.

NO Vertical Integration

We try to avoid any investments where the fund manager is ALSO the administrator (bookkeeper) of the fund.  This reduces any potential conflicts of interest.  Instead we select a platform (bookkeeper) with a solid track record and extensive investment options.

Behavioural Coaching

One of the most significant risks that investors face is their own behaviour.  Our role includes providing behavioural coaching. This helps you to navigate emotional decisions and market swings.

Your needs might be income not capital?

 We tailor our investments to your needs. For some clients, income is more important than growth.

Monitoring and Adjusting Investment Portfolios

At Plan4wealth, we believe that successful investing requires ongoing monitoring and adjustment. We understand that market conditions and your financial goals may change over time. We adapt your investment strategy accordingly.

We analyse your portfolio’s performance against key metrics like returns, volatility and risk.

Based on our analysis, we may adjust your portfolio. This could involve rebalancing assets or making strategic investments. We make these changes carefully, and invite your input. We consider your financial goals and risk tolerance. This keeps your investment strategy in line with your long-term objectives.

Conclusion

Plan4wealth’s investment philosophy is built on peronalised, transparent and evidence-based strategies.  We first understand your financial goals and risk tolerance.  We use those to create a tailored investment strategy.  This aims to maximise returns while managing risk.   

We use a long-term approach, coupled with thorough risk management.  This approach helps to protect and grow your wealth over time.  

Using a blend of market wisdom, behavioral coaching, and strategic foresight, we aim for a balanced and responsive approach to investment.  At our scheduled reviews, we go through detailed reporting with you. We track and adjust your investment portfolio so that it remains aligned with your evolving financial goals. This provides you with full transparency into your investments, prioritising long-term growth and financial stability.

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