Discipline

When it comes to investing, we can all be our worst enemies. This is because we let our emotions get the best of us – and at the worst possible times. Maintaining discipline is never easy, but it’s something that can be mastered with education.

Many investors tend to get excited about investing after their prices have risen. This happens because people feel comfortable and confident as markets rise. In reverse, when markets are in a downturn fear begins to set in. This results in investors selling often at the bottom of a cycle.

Think about the role of the media and finance industry in this cycle. The media needs drama, movement and colour to attract audiences and the financial industry makes a great deal of its money from clients continually buying and selling investments. If clients continually trade in and out of investments the main beneficiaries are investment houses who charge fees based on those trades.

It’s important to remember market uncertainties will come and go. More often than not, those that panic miss the inevitable rebound when it comes. And As your investment partner, we’re here to help you take the longer term view with your portfolio.

If you’re not convinced about the futility of jumping in and out of the market, this chart underscores the potential to miss available gains.

If you had invested $1,000 in the ASX/S&P 300 Accumulation Index in 2001 and left it untouched, you would have a balance of $3,893 by the end of December 2017. If you had missed the best 25 trading days during that period, the balance would have reduced by over 60% to $1,413.

Transparency

We’re constantly reminded by the media about investors who’ve lost their life savings in complex, dubious or untested investment schemes, and then there are those who were the victims of outright fraud. Investors often find themselves in these situations because they were not fully informed about risk and reward.

A higher return is only possible with a higher level of risk and there is no such thing as a guaranteed return. When an investor understands these points, they can understand what is possible and what isn’t.

At Schuh Group we counsel clients to understand why their investments are structured the way they are and the potential risks and rewards of any investment plan. Furthermore, we offer a completely transparent and secure relationship.

We operate on a fee for service basis where clients’ interests come first. Importantly we maintain a fiduciary certification which requires an annual independent audit of our investment practices.

We provide a written statement of any investment strategy that will be developed in accordance with your risk profile.

We provide a written statement of any financial plan with recommendations developed in accordance with your personal circumstances and lifestyle goals.

Advisors are consistently studied on the most up-to-date financial & legislative research and educational programs.

Advisors who provide advice relating to financial planning and investments are qualified and licensed to FYG Planners Pty Ltd, an Australian Financial Services Licensee and Australian Credit Licensee.

We have no financial interest in any firms that we use to structure your investments and receive no commissions or third-party payments.