Introducing Total Wealth
The team at Total Wealth are here to provide you with professional advice on all of your financial matters. We take the time to listen to your needs and will design a comprehensive financial plan tailored to your personal requirements, income and lifestyle.
Once your comprehensive financial plan has been implemented, we continually monitor it and report back to you regularly. We also meet with you at least once a year for a full and detailed review to find out if any changes need to be made to ensure your plan gives you the maximum benefit. At any other time, if you have further questions or would like to know more about how we are making your money work for you, you can contact us at our office, by email, or over the phone.
In additional to our advice, we also offer one-on-one coaching to help you plan and achieve your financial goals.
To ensure that you receive wide ranging financial development, we have also established professional, collaborative partnerships with other highly skilled businesses.
Growing Your Finances
Here at Total Wealth, we understand that things change. To account for this, we constantly analyse and review economic forecasts and diligently undergo comprehensive fund research. This ensures that your portfolios are always tailored to the current economic environment.
Not only do we monitor and adapt portfolios to maximise their effectiveness, but we also meet with product providers to make certain that they are doing what is best for all of our clients.
In addition, our Director: Katrina Studholme (AFA, BCM, PgDipPFP), regularly attends professional training courses to ensure that she and the team are always equipped with the best and most effective industry knowledge.
This valuable work happens around the clock and is in addition to our meetings and correspondence with you. So, you can be assured that your finances are in safe hands thanks to our dedicated, professional and highly skilled team at Total Wealth.
All Financial Decisions are interlinked. So, choosing to save now for your children’s education could change how you save for your retirement. To find out more, contact your financial advisor at Total Wealth. Contact Us
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Five Lifelong Principles for Effective Investment:
1. Accept capitalism and have confidence in the markets
As investors, we need to accept capitalism as a robust and resilient economic system and recognise that the markets are an efficient mechanism for rewarding those who provide capital to those engaged in the pursuit of wealth creation.
2. Accept that risk and return go hand in hand
One of the inescapable truths of investing is that to achieve higher returns, you have to take on more risks. When appropriate risks are taken, they generally lead to the returns that investors seek. The one thing we know for sure about risk is that if an investment looks too good to be true, it probably is.
3. Let the markets do the heavy lifting
As one cannot control the returns of the markets, the structure of your portfolio becomes key.
4. Be patient - think long-term
One of the great challenges that all investors face is that there is no easy or quick way to investment success. In the short-term, market returns can be disappointing. The longer you can hold for, the more likely you are to make positive returns. The reality is that markets go up and down with regular monotony.
5. Be disciplined
Once you realise that generating good long-term returns takes time, patience and belief in the markets, it is essential to put in place the discipline to stop yourself succumbing to impatience and ill-discipline. We know from research in the field of behavioural finance that we tend to feel at least twice the pain from losses compared to the pleasure from gains of a similar magnitude. The key to this discipline is to understand the very ordinariness of these market falls and not to look at your portfolio too often. Time is your friend.
Four Practices for Effective Investment:
1. Build a well-structured portfolio
Once you accept that returns come from markets, it is evident that structuring a well-thought-out mix of different investments (referred to as asset classes) should sit at the heart of your investment programme. Your long-term portfolio structure will dominate the investment returns obtained during your investment lifetime.
2. Use diversification to manage an uncertain future
Not putting all of your eggs in one basket is an intuitive and valuable concept. No-one knows what the future holds, and owning a highly diversified portfolio, spread widely across asset classes (bonds, equities and commercial property, for example) and across global markets, industry sectors and by company, helps make sure that we are prepared for whatever the markets throw at us over time; a portfolio for all seasons, if you like. Diversification is the key tool that we have against the uncertainty of the future.
3. Avoid cost leakage from your portfolio
Costs eat away at the market returns that you should be gathering for yourself. By adhering to the first two principals we reduce this problem, with a well-structured and diversified portfolio, compared with a portfolio that is constantly buying and selling assets trying to improve returns. When a manager buys and sells equities or bonds they incur transaction costs, which eat further into returns.
4. Manage risks carefully across time
Our approach to investing positions us as risk managers, rather than performance managers, as advisers have traditionally been. We have identified three key areas of risk management. The first is rebalancing a portfolio: having spent considerable effort ensuring that a client’s portfolio is both suitable for them and robustly structured, it is important to keep it that way. Rebalancing involves selling out of better performing assets and buying less well performing assets.
The second is fund selection: choosing which funds to recommend to our clients is a big responsibility that we take very seriously. We employ a detailed and insightful due diligence process to ensure that we are asking the right questions from product providers. We look at the ability of the fund firm to deliver market returns effectively.
The third is ongoing governance of the investment programme: it is entirely possible, and likely, that your portfolio will look much the same between one time period and the next with little activity, except for rebalancing. That most definitely does not mean that nothing is happening. We hold regular Investment Committee meetings that focus on reviewing any new evidence supporting or challenging our approach, the latest research on asset classes, and additional due diligence ensuring that our best-in-class funds remain just that.