The premise of Goals Based Investing is to focus each investment portfolio on specific individual personal and lifestyle goals. Those goals inform the right timeframe, risk and return parameters, which in turn determine the best asset allocation and investment mix. Goals can be short-term, such as taking a holiday, medium-term, such as renovating or paying school fees, and long-term, such as saving for retirement.
Most strategies in the market are too ‘cookie cutter’ and are not resilient enough to survive a downturn or an end of an investment cycle. What’s more, these strategies do not seem to adequately compensate the investor for the actual risk being taken. Are we really doing our best interest duty with the investment strategies that we are dispensing?
Looking at the current state of things, we have observed three investment ‘wrongs’ many financial planners are guilty of:
Investors are more knowledgeable about the market and their portfolios than ever before. They can see that not all is right in the world and there is an air of fear and doubt sweeping through many financial conversations.
Matthew Walker is a passionate advocate of Goals Based Advice and Goals Based Investing, and former Chairman of the Association of Goals Based Advice. Today he is the Managing Director of Dynamic Asset and Chairman of Dynamic Asset Investment Committee.
In this interview, he shares his thoughts on:
An alternative investment is an investment product other than traditional investments such as stocks, bonds or cash.
The two significant trends in contemporary financial advice are Goals Based Investing and Managed Investment Services. While the client and business drivers of each are independent, both innovations are set to transform financial advisory practices over the coming years.
In this episode, we speak to Matthew Walker from Dynamic Asset about Dynamic Asset Allocation, Goals Based Investing and the Association of Goals Based Advice.
