As a Financial Planning firm, we focus not just purely on investment returns, but on achieving goals or financial objectives. The highest possible investment returns are always desirable, but chasing this may come at a cost – increased risk could lead to increased losses. It is our job to help ascertain the returns required to meet specific objectives, and marry these returns to the risk clients are prepared, and more importantly, can afford to take. Often objectives can be met through other forms of financial planning, reducing the need to take excessive risk to chase higher returns.
It is also part of our role to manage expectations and emotions. During rising markets, it is natural to feel comfortable investing additional funds or taking more risk, while during falling markets the opposite is true. It is also useful to be reminded that markets falling is not an uncommon phenomenon. Market fluctuations are part of the investment process and over time, a well-balanced portfolio will recover its losses. We have been through multiple investment cycles and as such, have the experience and understanding to take the emotion out of investment decisions. This ensures that clients’ long-term objectives remain our priority.
