Investment Planning

“If you would be wealthy, think of saving as well as getting”.  Benjamin Franklin. 

There are many different theories on how to invest and what to invest in. Beware of the theories with no basis.  Having an understanding of how money works is as crucial as keeping yourself in good health. Allow us to guide you.

Our Investment Philosophy

At G3 we know that to achieve your longer term financial goals, you need a plan and a strategy.

As part of your wider financial planning goals, investing for the future is a key part of ensuring you accumulate the wealth you need in order to live the life you choose.  We take this process very seriously, and look to proven strategies that work.

We don’t believe anyone has a crystal ball when it comes to investing, regardless of experience in the financial industry.  Attempting to predict the future in terms of when and where to invest has been proven not to add any value to investors, this only adds costs, affects returns, reduces diversification and ultimately increases risk to the investor.  We therefore prefer to adhere to proven ways to invest our clients’ money.

Science has led to tremendous advances in areas from lifesaving medical breakthroughs to immediate communications.  However, in the past, science has provided little influence in investing.  Instead of keeping pace with advancements in modern portfolio theory and historical and statistical evidence, investors and money managers have relied on conventional wisdom and flawed assumptions.  How can investors sort through the vast amount of available data to maximise after-tax returns and minimise risk?When it comes to investing, we help our clients focus on what they can control.  Too many investors focus on the markets, the economy, fund manager ratings, the performance of a particular security or strategy and so often overlook fundamental principles.  The significance of a portfolio asset allocation, and the proportions of its total assets invested in different asset classes should not be underrated.  Research highlights the crucial role of a portfolio’s long term asset allocation in determining an investor’s success.

Investing is
Investments must be secure
Diversification is essential
Costs & taxes are key factors
Transparency is essential
Risk & return are linked

How can we assist?

We understand the advancements in investing, share this knowledge with clients and implement portfolios structured around the evidence to enable our clients to focus on achieving the outcomes they want.

We educate clients, collaborate with them, show them how they can achieve results, listen to them, understand their needs, help them avoid potential pitfalls and assist them with crafting solutions that work.  We share our knowledge with investors so that our advice makes sense and offers them optimal investment outcomes based on compelling scientific evidence.


Handy Tip

Ensure your investment return is benchmarked appropriately.  For example, if the return is quite volatile, such as an equity based investment, it is inappropriate for your adviser or fund manager to compare your investment returns with that of a 90 day term bank deposit. Your returns need to be compared to an equity index benchmark similar to those you are invested in – how will you know if you are receiving appropriate returns for the investments you have if you do not know the comparative market return of a similar index after you have paid the management fees?

The fees disclosed with investing in direct shares or managed funds are not necessarily all that is being charged.  Many types of investing have hidden fees which are undisclosed, adding costs to your portfolio – these are known as execution costs (the cost of executing each individual transaction). 

Asking what the turnover of the fund or portfolio is useful to find out how often the manager is trading your investment and requesting the execution costs over a past period can clarify this further.  Ask more about the costs to your investment return for performance fees paid to managers.  Be aware that often this information is not always forthcoming and can differ from one period of time to another.