Strategic wealth management

We have most heard the expression that ‘he who makes no mistakes, makes nothing at all’; and another, ‘if you fail to plan, you plan to fail’; and again, the reminder that you rarely set out on a motor journey without having a roadmap (even if in your mind) as to how to get there. You know where this is going so let’s not beat about the bush: having a plan, based on individual factors and with a clear strategy; and implemented/ actioned without waver will always give a better outcome than stumbling along from one hurdle to the next.

The simplest of all investment strategies was taught to us as school-aged children: open the school bank account and deposit a regular amount on every school banking day – and how great was the pleasure when at the end of the year, the accumulation of the deposits made and the interest compounded was regarded quite correctly as something that we would not have had, if it weren’t for the undying commitment to that process.

Most strategic investment planning is based on long-term outlooks (i.e., more than 5 years) and in many cases the plan takes us unto terms in excess of 20 years (embracing a latter period in retirement).

Even a simple ‘regular savings plan (with/ without ‘gearing’) is very well worth considering while you contemplate your financial independence into the future.

The following extract ‘Beating the Street’ by Peter Lynch – a former Investment Director at Fidelity in New York contains the significance of this strategy (Note – these calculations were made back in 1993, but logic suggests they will still be relevant today):

“The following calculations, strengthen the argument for investing on a schedule. If you put $1,000 in the S&P 500 index on January 31, 1940, and left it there for 52 years, you’d now have $333,793.30 in your account.


If you added $1,000 to your initial outlay every January 31 throughout those same 52 years, your $52,000 investment would now be worth $3,554,227. If you had the courage to add another $1,000 every time the dropped 10 percent or more (this happened 31 times in 52 years), your $83,000 investment would now be worth $6,295,000.


There are substantial rewards for adopting a regular income of investing and following it no matter what, and additional rewards for buying more shares when investors are scared into selling.”

If you – or any of your family, friends or colleagues – have some long-term goals about which there is any uncertainty as to the ability to attain them, Contact Us (or call Kathy on 07 3421 3456) to arrange a meeting with one of the experienced financial advisers at Continuum Financial Planners.

The information contained in this article is general in nature and does not take into account your personal circumstances, financial needs or objectives. Before acting on any information, you should consider the appropriateness of it and the relevant product having regard to your objectives, financial situation and needs. In particular, you should seek the appropriate financial advice and read the relevant Product Disclosure Statement or other offer document prior to acquiring any financial product.