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At Find Wealth we provide clients with different super and investment options.  We have catered for all client types regardless of whether or not you own an industry fund, retail fund and/or SMSF (the SMSF might hold a retail fund).  We believe one of these options will suit you and you will appreciate the real transparent costs we charge.

Super Option 1:

Industry Funds/Retail Funds using Model Portfolios

Super funds, whether they be industry funds or retail funds, have realised that they need to provide an offering that is for the price conscious investor.  These investors usually have the following characteristics:

  1. Price sensitive – they want to know they are not paying a lot to have their money in super.
  2. Time poor – they don’t have the time to manager their own super.
  3. Care factor of Nil – they don’t really care too much what is happening with their super.

If you are this type of client then you will find that industry funds or retail funds that provide model portfolios and/or multi-manager funds are right for you.

Even so, we find that there is always some administration issues that arise and need to be taken care of.  If you are the type of client that does not want to have to deal with the super funds when an issue arises and you wish someone else would look after it, then we can help.

At Find Wealth, we charge a very small fee each year to be the manager of your industry fund or retail fund so you don’t have to worry about the administration side of things.  We can do that for you.

Super Option 2:

Retail Funds – Building Managed Fund Portfolios

Some clients want more than the set model portfolios or ‘life stage’ portfolios developed by the super fund providers.  These type of clients want an adviser who is more proactive in managing their super affairs.  They are willing to pay a little bit more each year in fees to have a superannuation plan set up that involves building a portfolio with a variety of managed funds.  These investors may have the following characteristics:

  1. Price realistic – they want to know they are not paying a lot to have their money in super but understand that it does cost to get someone to actively manager their funds.
  2. Time poor – they don’t have the time to manager their own super.
  3. Care factor of ‘Some’ – they do care about their super.

At Find Wealth, we can develop a portfolio that meets your needs and we can manage this on a regular basis.

Super Option 3:

Wrap products with greater investment choices.

Some clients don’t like the idea of just having a portfolio of paying percentage based fees to managed fund providers or percentage based fees to advisers.  They want to pay a fixed fee or fees that reflect the time their affairs are being managed.  They also want the security of fixed interest products and term deposits but with some exposure associated with direct shares.  These investors may have the following characteristics:

  1. Don’t want to be placed in investments based on their Risk Profile – go outside of the box.
  2. Like the idea of capital preservation mixed with the opportunity for growth and the exposure to corporate actions.
  3. Are willing to pay to gain exposure to different types of investments.
  4. May own a SMSF and want more control over their investments.
  5. Don’t like percentage based fees and like paying for the work that is done.

At Find Wealth, we allow clients to choose this option however there are certain conditions we abide by and ask the clients to follow:

  1. We are big believers of capital preservation.  As such, 80% of your funds will be placed in Fixed Interest and Term Deposit type products.  Historically, these investments have returns on average nearly as good returns as other asset classes without carrying all the associated risks.
  2. We do want some exposure to direct shares so that we can gain access to corporate action opportunities.  However, our philosophy on direct shares is a buy and hold approach.  We are not here to try and guess the market, to buy and sell repeatedly with the hope to make a gain.  We consider that speculative type of investing and it nearly paramounts to gambling.  Our approach is a buy and hold and live of the dividends.  If you have the buy and hold approach then you are not forced to sell at a time when the markets are going down.
  3. Our clients understand that when the markets are down it is a great opportunity to buy.  It is not the time to sell.  With a buy and hold approach we are not concerned about the fluctuations in the markets but want to see a steady income being derived from those investments.

Most of the time you only hear about the clients who have lost their funds.  It is not often you hear of the client complaining they have not made more money from their funds.  Our aim is to make sure the funds you invest in, whether in super or outside of super, are still there when you retire.  Obviously, nothing is guaranteed, however with our philosophy, we try to reduce the risk of negative returns over a 5-10 year period.

We also understand that a sound portfolio is one that is supported by a majority of conservative investments and some growth assets – but not the other way around.  Over the last 15 years conservative investments have nearly performed the same as growth investments (refer to Table 1: Diversified Fund Performance (Results to 31 March 2016)).  A sound portfolio is about protecting the base and deriving income.  Once that is achieved we then look at growth assets, like direct shares, where we can take advantage of corporate actions when they become available.

Fund Performance

At Find Wealth, we can develop this type of portfolio.  However, you must decide if this is the type of investment strategy you would like.  You need to be aware that this investment strategy may not fall with in your risk profile e.g. High Growth.  If you do then you are able to choose this investment option.

Here are some general information about Wrap products which are used if you choose this option:

  1. Placed in a Wrap product that has access to a greater range of investment choices.

Your Part in Wrap Service

Managed Funds, Term Deposits & Direct Shares

Super Wrap product

WEALTH ACCUMULATORS (those who are over age 55 who want Capital Protection in place)

Another option for those nearing retirement is to consider protecting your capital but it comes at a cost.  The upside is you won’t lose the capital you have invested (less fees).  The downside is that if markets rises you might not benefit from the rise as much as being in other funds whilst capital protection is turned on.

You can obtain Capital Protection in relation to eligible investments by investing in the Capital Protection Fund. The Capital Protection feature aims to protect the value of your investments in eligible managed funds, while still allowing you to benefit from growth when your chosen funds perform well. The protection is applied to your investment for a term of your choice between approximately 5 and 10 years.  It is designed to enable you to obtain, at the end of the chosen term, the value of your investment that is at least equal to its value as at the time you commenced the protection (assuming you reinvest all distributions and do not make any withdrawals).  You are restricted to certain fund managers and there is a cost of being protected.

RETIREMENT CLIENTS (those clients fully retired and starting a pension)

Option 1: Just Allocated Pensions

Client’s will be placed in an Allocated Pension using model portfolios (based on Risk Profile or Life Stage).  The model portfolios are designed by the investment research team.  Every 24 months you will be invited to have your portfolio reviewed.  Given your funds are in Model Portfolios we will not need to change any of the underlying funds as they occur at a higher level – thus you can pay cheaper management costs.

Option 2: Allocated Pensions and Annuities

Client’s who are concerned about having enough income throughout retirement might like to consider placing some funds into an Annuity – be it a Lifetime or Term annuity.  This provides peace of mind that you will receive a certain level of income.

Option 3: Allocated Pension with some buckets in place

One option is to have 12 months to 2 years worth of cash in place and the rest invested in managed funds that have a component of growth to it.  This way you can draw down the cash component and allow the markets to do what they will with the managed funds.  It means you are not selling down the managed funds when the markets are doing poorly.  You just have to hope that at some point with in the 12 months or 2 years your investments have done well when re-balancing is required to place more funds into the cash account that you need to draw down from.

Option 4: Refer to Super Option 3 above.

You can be placed in defensive assets (TD’s and Fixed interest products) and direct shares.  It allows access to corporate action opportunities whilst protecting most of your capital.

Do you want Centrelink with that?

Some retirees are happy to deal with Centrelink whilst others want help with forms etc.  We can provide you with the help you need when it comes to dealing with Centrelink.  It is just a matter of letting us know that is what you require.