Have you recently moved to Australia? As you familiarise yourself with the investment landscape, you may be seeking a wealth manager to plan your investments for the financial year ahead.
When exploring investment opportunities, the first step is to decide on your investment goals and you can often reach your targets faster by developing a strategic financial plan.
Diversification is a fundamental principle when it comes to establishing an effective plan. Having a range of different asset classes within a portfolio is essential if you wish to minimise risk and even out the effect of performance ups and downs over time. Risk and return are inextricably linked and you cannot have one without the other. If you are targeting a higher level of potential return you must be comfortable that this comes with a higher level of risk.
When visiting a wealth manager for the first time their fact-finding will include gathering an investor's financial data, assessing what level of investment risk you are comfortable with and discussing investments that suit your risk profile, whether that is very conservative or more aggressive. Not all investment strategies are suitable for all investors so financial advisers can help devise a plan that meets your individual needs.
A wealth manager can assist in determining which asset classes are most suitable to invest in. The four main asset classes include: shares, property, cash and fixed interest and the amount allocated to each should depend on your goals, objectives and investment time horizon.
You always have the choice to take a ‘hands on' or ‘hands off' approach to the management of your investments. Solutions such as administration platforms can help to minimise the day to day decision-making and provide consolidated reporting, although you remain actively involved in making any investment choices.
John Winters and Carmie Olowoyo are wealth managers with Macquarie Private Wealth, based in Perth.
Macquarie Private Wealth's services are provided by Macquarie Equities Limited ABN 41 002 574 923 ("MEL") participant of Australian Securities Exchange Group, Australian financial services licence No. 237504, No 1, Shelley St, Sydney NSW 2000. This information and general advice has been prepared by MEL and does not take into account your objectives, financial situation or needs. Before acting on this information you should consider whether it is appropriate to your situation. We recommend you obtain financial, legal and taxation advice before making any financial investment decision. MEL is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth), and MEL's obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542. Macquarie Bank Limited does not guarantee or otherwise provide assurance in respect of the obligations of MEL. The information in this document is directed and available to residents of Australia only, and is not an offer or solicitation for the purchase of securities, units or investments unless expressly stated otherwise. While Macquarie provides the information in good faith, it accepts no responsibility for the accuracy, completeness or timeliness of the information.