The value we offer
Over the years – through all types of market upturns and downturns – we have noticed that the longer term financial success we help create for our clients depends more upon the structure and strategies we develop and implement for them than their particular underlying investments. That is not to say that investment choices are not important – of course they are. It is simply that we find that it is often how an investment is owned, and the asset classes that are selected that are the significant determinants of financial wellbeing over the longer term.
Our experience concurs with the findings of a major research study conducted in the US by actuarial firm Brinson, Hood and Beebower. The study, ‘Determinants of Portfolio Performance’ (1986, 1991) concluded that 80% of the value a financial planning client receives is derived from the advice given, and only 20% by their specific investments. And of the value derived by these investments, 94% of performance was determined by the asset class allocation, 4% by the securities selected, and 2% by market timing.
What we believe this means is that it’s better to focus on having quality advice rather than trying to ‘pick’ individual investments or to ‘time the market’.
At Five Pillars, we’re not about the latest investment ‘hot tip’ but what we do concentrate on is structuring your financial affairs using effective strategies that drive home improved income, reduced expenses (including tax) and longer term asset growth.
Along with our assistance with implementing your strategy and providing ongoing advice and support, this is the real value we offer our clients.
Contact us today to find out more about the Five Pillars difference that will help you organise and improve your financial circumstances, so that you can achieve your goals sooner.
Please note that past performance is not a reliable indicator of future performance. The information contained in this website is of a general nature only. We strongly recommend you seek advice specific to your goals and circumstances before taking any action.
