Archive for investment planning

Investment Planning: the Ins and Outs of Global Listed Infrastructure

The investment planning advisers in our Perth office would like to present you with information from our parent company, AMP Capital. We handle a variety of investments and we are proud to have the resources of AMP Capital to help us help you with your finances. While we can’t provide individual financial advice in a blog, we would like to pass on some recommendations from Tim Humphreys, AMP Capital Head of Global Listed Infrastructure.

Global Listed Infrastructure Investment Planning

Due to a low correlation between the equities market as a whole and the segment of global listed infrastructure, allocating assets into global listed infrastructure can help diversify one’s investment portfolio. (2)

According to Bloomberg, global listed infrastructure has provided returns of 11.7% per annum over ten years and 14.9% over five years. (1)

Mr Humphreys feels that globally listed infrastructure, which has only been an asset class for approximately ten years, offers what he calls a “significant opportunity for investors” due to what he sees as “relative inefficiency.” (2)

According to Mr Humphreys, dedicated global listed income managers with an eye towards long term investment hold less than 3% of global listed infrastructure stocks. The remaining 97% are held by generalist managers or index funds who use short term forecasts when making investment decisions. Mr Humphreys feels that the short term is not the correct way to value these assets. (2)

According to Mr Humphreys, the inefficiency of the 97% in using short term forecasts provides ample opportunities for those who specialise in infrastructure investment to provide value to the investor. He feels that the nature of long-term contracts and regulation of global traded infrastructure make them a stable and predictable investment. (2)

Call the Advisers at Approved Financial Planners in Perth Today

To learn more or for an individual consultation, call Approved Financial Planners in Perth today: 08 6462 0888.

(1) Bloomberg. Total Return in USD of Dow Jones Brookfield Global Listed Infrastructure Index as of 31 December 2014.
(2) AMP Capital. How does global listed infrastructure fit into your equity portfolio. 06 November 2015.

Have You Set Your Financial Goals Yet?

One of the services we offer is called “investment planning.” When potential clients call our Perth office and ask for an individual consult, one of the first things we ask is “what are your investment goals?” Often, the answer is “I don’t have any investment goals.” This raises what we see as an obvious question: “How can you have an investment plan without investment goals?”

Remember that all information here is general. We cannot provide any individual advice on our blog. If you want advice, you will need to call us and arrange for a free consult. Here are three tips for getting it right.

Setting Financial Goals

Getting a Handle on Finances

Whenever we provide an individual consult, it always goes better if you have a handle on your finances. This means knowing how much money you have coming in every month, your assets, how much money going out every month and your debts. People who know this information tend to be more efficient at saving money, which can eventually be used for investments.

Setting Goals

Setting goals is the foundation of any plan. It is impossible to have a real financial plan without financial goals. These can run the gamut from short term goals, such as paying off a credit card, to long term goals, with the ultimate being retirement.

Your financial goals will determine the amount of money you need to make them happen. For example, when do you want to pay off your home mortgage? How about your car or truck? Will you be putting children through college? Do you want to keep your current home, buy a larger one or downsize? Do you want to travel?

All of these questions are important.

Calling Us for an Individual Consult

At Approved Financial Planners, we not only have a wealth of experience in serving the Perth area, but we now have the resources of AMP behind us. You can make us your “one stop shopping” outlet for financial planning, retirement planning, superannuation and mortgage broking, all from our Perth office.

To learn more, call 08 6462 0888 today.

Techniques for Building Wealth

We offer a full menu of financial services in our Perth office. Our financial planners can help you navigate the maze of superannuation, retirement planning and other financial services to help you determine what is right for you. We cannot give any individual advice without a consult, but we would like to give you a general overview of products and techniques that can help you build wealth.

Your Superannuation Fund

Your superannuation fund can be a helpful asset in building wealth for retirement. If you call or visit our Perth office, our financial planners can help you set up a self managed superannuation fund or help you decide which super fund you feel is the most appropriate for your needs.

Techniques for Building Wealth

After we have assessed your risk profile, we can help you develop goals for your retirement based on your preferred lifestyle and tolerance for risk. We can advise you on your current funds or we can help you find funds that match your current risk tolerance and goals.

Retirement Planning

Retirement planning can be closely linked to your super fund, but your super fund won’t be the only factor. We can assist you in setting a retirement date and a plan to help get you there. Then, we help you monitor and execute your plan. We can consider such factors as tax strategies, superannuation concessions and maximisation of Centrelink entitlements.

Investment Planning

Approved Financial Planners is proud to offer investment planning in Perth. We have the resources of AMP to back us up. We can help you choose from the many different platforms such as shares, managed funds, real estate and a plethora of other choices.

Investment planning can include such strategies as diversifying your investments to avoid the risk of “putting all your eggs in one basket.” We can review your portfolio on a periodic basis and re-calibrate it to fit your current financial situation and your lifestyle.

For a risk-free consult, call 08 6462 0888 today.

Managing Risk vs Return

Those who are looking for financial planning help in Perth are bombarded with unsolicited advice on a daily basis. At Approved Financial Planners, we don’t give advice on our blog, but we can educate consumers about their choices and what they may want to consider when looking for a financial advisor.

When we have an individual consultation with an investor, one of the most important considerations is their risk tolerance. We find out how comfortable a client is with risk so that we can create a financial plan that they can live with. A client who is uncomfortable with risk is going to be steered towards a more conservative approach. A client who is comfortable with risk will be steered into a more aggressive approach.

Risk Vs Return

Generally, the higher the risk of an investment, the higher the potential reward. This is a fundamental of investment. However, some strategies are commonly used to shield even an aggressive investor from undue risk.

Long-Term Timeframe

Long term investments carry less risk because fluctuations in any market tend to even out if one waits long enough. This doesn’t work 100% of the time, but time can be considered to be a valuable asset in investing.

Honouring Risk Tolerance

If one of our clients is uncomfortable with the risk factor for any investment, we usually advise them not to go through with it.


One of the fundamentals of financial planning and investing is to diversify assets by investing in different market sectors. The more markets one invests in, the less ill effects they feel if one market temporarily struggles. They are usually able to wait for that particular market to return to norm.


Investors who educate themselves about investing and about the different markets and opportunities are usually in a better position to manage risk.

Approved Financial Planners

At Approved Financial Planners, we have been helping Perth residents work towards their financial goals since 2005. For an individual consultation, please call 08 6462 0888.

Five Common Mistakes Made by Neophyte and DIY Investors

When it comes to financial planning, many Perth residents have a “can do” attitude. It seems like a lot of people try to go the “DIY route” when it comes to making investments. While this is admirable, investing is complicated and competitive. Amateur investors often find themselves competing against professional investors who invest for a living. It is easy to guess who usually wins and who usually loses in this scenario.

Here are five common mistakes that DIY investors make.

Failure to Calibrate Goals

The two most common variations of this are too many goals and unrealistic goals. The most common is expecting to much of a return in too short a time with too little to invest. Often, people set a budget that leaves them a miserable current lifestyle. Eventually, they can become bitter towards their budget and derail their own investment plans.

Mistakes By DIY Investors

Failure to Invest Sufficient Time and Effort

It takes time and effort to create a budget and an investment plan, with or without a professional investment planner. This could also be called, “Failure to treat investment like a business.”

Failure to Fully Understand Their Investments

Many investors go for grand schemes and complicated investments that they don’t understand. Sometimes, a simple investment such as a rental property in an area primed for long-term capital growth outperforms the most complicated and “promising” of investment schemes.

Failure to Assess One’s Limitations

“Leveraging” is a term often used in the investment field. It means “borrowing money to invest.” While this strategy can amplify gains, it can also do the same to losses. Some investors borrow more than they can afford to lose, because they don’t know their limitations.

Failure to Hire a Professional Financial Planner

Financial planning and investing are competitive fields, especially in Perth. DIY investors risk losing it all. A qualified, professional financial planner can help investors steer around the pitfalls facing the DIY investor.

Call 08 6462 0888 for more information.

Two in Three Households Assess Themselves as Strapped for Cash Between Paydays

According to the recent Household Financial Wellbeing Index by banking giant ING, two out of every three households report that they don’t have enough funds to live comfortably between paydays.

One out of three of those households charges necessities on credit cards between paydays, while nearly half estimate that they would still need to take home another $300 per week to live comfortably. However, nearly four out of five respondents said that they would rather save a raise of 5% than spend it.

Strapped for Cash Between Paydays

The ING Household Financial Wellbeing Index is released quarterly and ranks levels of wellbeing using six different indicators, including mortgage debt, credit card debt, household income, investments, savings and ability to pay their bills.

According to the index, only 9% report being satisfied with their present take-home pay. And among those who reported themselves as being cash strapped between paydays, 15% reported that they are chronically strapped for cash. 35% of those who feel they are often cash strapped reported using money from their savings to catch up on household expenses during shortfalls, while 31% reported using credit cards to get them through to the next payday. One out of ten report having borrowed from their family.

6% reported that their monthly income was not sufficient to pay all of their debt and immediate bills, while 7% saw it as “impossible” to pay every monthly bill promptly. 15% reported that they have no savings, while one out of four reported that they have no investments or assets. Homeowners came out ahead in the statistics, though, as 42% reported being ahead in their mortgages.

What This Means to You

At Approved Financial Planners, we feel the report shows interesting patterns. It is encouraging that so many respondents said they would save a raise rather than spend it. Thanks to the effects of the Global Financial Crisis (GFC), Australians have become savers and investors who are learning to sacrifice some of their present lifestyles to provide for their futures.

In our practice, we have found that that many of the people we talk to have more resources than they believe, but aren’t using them to their full potential. If you would like a complimentary financial consultation with no obligation, please call our Perth office today: (08) 6462 0888.

What You Need to Consider When Finding a Great Financial Adviser

In an environment where business, finance and real estate are becoming increasingly competitive, it is crucial to find a great financial adviser. With an investment market that is becoming even more complicated, we think that it will be even more important to have a great financial adviser who can steer you through a maze of investment possibilities and help you choose the path that leads to treasure at the end.

Finding a Great Financial Adviser

Before You Meet Your Adviser

Before you walk into a financial planning firm’s office, you absolutely must do your homework. The first thing you need to do is ask yourself some questions. Why do you want a financial adviser? What do you aim to accomplish? How much risk is acceptable and how much is unacceptable? What time frame are you looking at for growth? What vehicles would you like to use for investment?

When You Meet Your Adviser

After you have answered your own questions, there are plenty of questions you should ask your adviser, too. How long have they been associated with the finance industry? What is their specialty? How much money do they charge? What is their philosophy on investing? Is there a free consult? If you aren’t satisfied and want to change advisers, will it cost you anything?

You want to make sure that you and your adviser see eye to eye on most things and that you trust them. The process should be simple for you: know what you want and find a financial planner who can help you get it.

Investor, Beware

There are some patterns that are dangerous to fall into. We don’t recommend jumping around from company to company and financial planner to financial planner. While it is occasionally necessary to change planners, we can’t state strongly enough that you want to get the selection process right the first time if possible. Your relationship with your financial adviser should be long and prosperous for both of you.

If you like what you have read here, please contact us at Approved Financial Planners and give us the opportunity to show you that we have the right adviser for you. We make three promises to you: good advice, good people and good value. Call (08) 6462 0888.