Real investment advice: How advised clients reap the benefits

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Advised clients vs non-advised

Money Management magazine recently reported that investors receiving real investment advice from financial advisors during the COVID-19 pandemic (and the following financial market volatility) saw an additional 5.2% per annum return on their investment compared to non-advised investors.

Those advised investors with a portfolio value of $250,000 reaped the rewards, gaining as much as $40,000 by just staying in the market. That’s because, when the market is highly volatile, timing and knowledge are everything.

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Emotion-free investing

The fact of the matter is that the most successful investors make measured (not rushed or emotional) decisions and rely on professional advice, not headlines.

The most crucial mistake that so many go-it-alone investors made during the recent market volatility was to follow their emotions and exit investments, as many experienced difficulty re-entering the market later. When it is your money on the line, it is understandable to experience anxiety, try to mitigate risk and reduce any chance of financial loss.

But the important lesson that all good financial advisors know is that all financial investments will experience ups and downs, and nobody can perfectly ‘time’ the market. Staying the course is far more beneficial than exiting early.

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Financial know-how

A good financial advisor can not only prevent behavioural mistakes, but can provide a range of expert investment advice to help you grow your wealth. From asset allocation, growing your cash holdings, tax-effective investment strategies and financial planning, good financial advisors are always playing the long game.

Rather than having ambitions to make their clients ‘overnight millionaires’, the team at Step Up Financial is interested in making the right money choices for their clients’ individual circumstances and future goals.

Diversification is a key strategy we employ in our investments, which is particularly beneficial during times of market volatility. By investing across different asset classes, often including home-grown investments as well as some off-shore and building a balanced portfolio, we minimise the risk that comes with external factors influencing the market. When one stock doesn’t perform well, the chances are others in the portfolio will be doing well, and overall, average returns will be steadier.

In fact, investors with diversified portfolios experienced far better results during the 2008 Global Financial Crisis than those without, and fund managers are seeing the same result as the recent market turbulence starts to settle.

How can Step Up Financial help?

As fully qualified, experienced financial planners, we’re able to help you understand and manage your investments more effectively. We also provide financial services, including advice on:

And we encourage your pathway based on your own individual circumstances and values.

Are you ready to Step Up and take control of your financial future?

Using the Step Up Financial Process, we help you launch the plan that will grow your wealth, protect your wealth and keep you in control.

Step up and take control of your financial future by contacting our local team of experienced financial planners today.

Need more information? Get in touch with Step Up Financial

    • 107 Moulder Street,
      Orange, NSW 2800

      PO Box 2499
      Orange, NSW 2800

    • (02) 6362 5445