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10 Beliefs

1. The financial plan always comes before the investments. Any product-related advice will flow out of your financial plan. Through talking to you, we agree what you need the money for and when you need it – then we structure your assets accordingly. If a financial adviser leads with a product, run for the hills!

2. There are three elements of risk: emotional tolerance, how much risk you need to take, and your financial capacity to take risk (i.e. how much and for how long could your investments fall in value before you would need to materially alter your lifestyle). Striking the balance between these three elements is difficult, but we can help.

3. Inflation is the enemy: During a 30 year retirement, achieving a return on your investment of 1% per annum less than inflation would reduce the purchasing power of a £500,000 investment to £370,000

4. Growth assets (the Great Companies of the World) will drive performance. Investing in the global stock market is the best way we know to achieve above nflation returns, and so increase the purchasing power of your capital. Over long periods, investing in the stock market is not risky. Cash is a high risk long-term asset as your purchasing power is likely to reduce

5. Defensive assets (bonds) are emotional assets to help you ‘stay the course’. The inclusion of bonds will limit the ups and downs of a portfolio and help you to stay invested through thick and thin.

6. All stock market downturns will be temporary. The financial press will say: “This time it’s different”. Every downturn will be caused by something different, but the outcome will be the same. There will be a recovery and global stock markets will continue to rise over the long term.

7. No tactical switching. There’s a huge weight of evidence to show that tactically switching between assets to gain an advantage is likely to damage your wealth, not add to it.

8. Avoid ‘active’ fund managers. The vast majority of ‘active’ investment managers don’t beat the market and the winners don’t tend to repeat. They also charge you extra for the privilege. Avoid!

9. The financial press is not your friend. The press only tends to report stock market declines, never the growth. The stock market goes up roughly 75% of the time but you’d never know that from the news. They’re constantly promoting the latest ‘shiny’ investment or how to benefit from the latest change in markets or the economy. Ignore it all.

10. Most of the value we add is through helping you make good decisions, giving you peace of mind. n Allocating your capital as part of an overall financial plan to do what’s important to you. n Encouraging you to stick to the plan through thick and thin. n Providing clarity, peace of mind and organisation. n Adapting your plan to the inevitable changes in personal circumstances and the world around you. n Gently holding you to account so that any required action is taken. If you think we may be able to help you, please get in touch and we can have a chat.

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