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News Bulletin : ADA News Bulletin May 2011
50 MAY 2011 Dental Study Tours Dental Study Tour to South Africa and Botswana Along the Garden Route to the Okavango Delta 4--21 November 2011 15 Hours of CPD Lectures Applied For Travel from Cape Town along the Garden Route. Fly up to Botswana for a safari adventure in the Okavango Delta. At the end of the tour there is an optional extension to Victoria Falls. Dental Study Tour to Cuba 18--30 January 2012 10 Hours of CPD Lectures Applied For Travel through Cuba enjoying its culture, scenery and music. e journey combines professional visits and lectures with cultural visits. At the end of the tour there are optional extensions in Havana and on a Caribbean beach. For further information and full brochures on the tours please contact: JON BAINES TOURS PO Box 68, South Brunswick, Victoria 3055 Tel: 03 9343 6367 email@example.com www.jonbainestours.co.uk investment insight sudden realisation that retirement is looming and they are poorly prepared. This is when they take action and become interested in their finances. Unfortunately, for many it is often too late. Make your 'eureka moment' for investing right now and you will save significant amounts of money, be more comfortable with your investments and investment decisions and you will sleep more soundly at night. Take a few minutes to digest the information presented below and act on it today with steely resolve. DO IT YOURSELF INVESTING You will fit into one of the following investor type categories: • The delegator -- you hire someone else to manage your money and put trust in the person to do the right thing. You are busy with other more important things or with things that interest you. • The DIY investor who seeks some advice -- you do not use or trust traditional financial advisers but rely on family, friends or your accountant for advice and guidance. • The DIY investor who goes it alone -- you shun advice from advisers/salespeople because you have previously been burnt. Yo u have taken the time to develop your own investment knowledge and trusted sources of information and are comfortable managing your own investments. The pervasive lack of trust in financial advisers has made the DIY investor segment the fastest growing part of the Australian investment industry. Currently, more than 40% of all superannuation assets are in self managed super funds. It is estimated that only 15--20% of investors actually receive financial advice but approximately 80% are paying ongoing fees for services they are not receiving. The rapid growth in the number of DIY investors indicates that the current advice offering is not what investors want or need. WHAT DO DIY INVESTORS WANT AND WHAT DO THEY REALLY NEED? • Access to advice that is not tainted by self-interest. Investors want advice that is free from conflicts of interest, unbiased by commissions and fees and has the best interest of the investor as the primary basis. The only way to achieve this is to pay a professional dollar based hourly fee for advice and make sure you are the only person paying your adviser. To ensure that conflicts of interest are removed investors need to separate financial advice from product sales and have the ability to execute their own transactions. Therefore direct access to products is a must. • Investors want to be able to sleep at night. Increasingly volatile markets and global uncertainty make investors want an investment portfolio that matches their personal risk appetite that doesn't keep them awake at night worrying about their financial future. Having worked hard to acquire wealth you want to protect and grow this wealth. Gaining an understanding of your personal risk profile is the most important step in the portfolio construction process. There are some great tools available to help self-assess your attitude towards risk. Once you understand your attitude towards risk you are better equipped to select investments that produce the desired outcome and help you to gain confidence in investment decisions. • Investors want access to professionally researched and constructed portfolios that appropriately match risk and return. Once the investor's risk profile is understood, they need to create and access portfolios that are appropriate for their risk tolerance -- the portfolio needs to have the right balance between defensive assets and growth assets. Factors like investment experience, time horizon and the capacity to take risk affect this mix. Access to education and independent research sources allow the investor to access, monitor and maintain risk appropriate portfolios. Professionally prepared model portfolios can be used as a template for investing or as a benchmark to measure the performance of a portfolio. • Investors want access to timely information. When you read something about a company in the newspaper or a magazine or see a story on TV it is no longer news. The stock market has long since digested and reacted to the news. DIY investors need access to the same share market insights that stock market professionals use so they can make better investment decisions. • Investors want direct access to the latest insights and strategies from people who actually manage the money. Professional money managers get preferred access to capital raisings, broker research and information about money movement in the market. Time spent at the coalface of investing provides professional money managers unique insights into where and how money is being invested. Investors who choose to utilise the services of professional managers want access to these insights on a timely basis so they can use the information in their investment decisions. THE FINANCIAL ADVICE INDUSTRY HAS BEEN INDUSTRIALISED AND COMMODITISED Regular readers are aware of my opinion that the vast majority of financial advisers are simply salespeople. There are some good advisers but the institutionalisation of advice has led to a 'one size
ADA News Bulletin April 2011
ADA News Bulletin June 2011