By Henk Appelo, Lead Specialist, Investments Product Owner
Traditionally investors have looked for places to put their cash so that it can meet the needs of certain life goals, like retiring comfortably.
Let’s stop for a moment and ask ourselves what drives this behaviour?
Why not flip things around instead and ask the question of what outcome would you want to have with your money in a particular circumstance.
Now this is a question that might sound simple, but the depth of choice available to any investor right now makes it just a little bit harder to answer at first glance.
At Liberty, we believe that the outcomes people want is to grow their wealth in order to enjoy and maintain their quality of living and ultimately, achieve financial independence in retirement.
Many people are time starved. More are overwhelmed and confused by the current array of choices. And most people are looking for investment advice that cuts through the complexity and helps them to achieve their personal investment goals.
This is why many Asset Managers and Financial Advisers have completely evolved their approach to investing.
To begin with, it’s pivotal to improve the advice experience by making it outcome-based and interactive.
What do clients want their investments to do for them and what are their specific goals?
By understanding this, Financial Advisers are better equipped to deliver meaningful guidance that will help people engage with, and achieve their lifestyle goals instead of simply chasing fund performance.
We call this new approach “goal-based investing”.
Planning for the future should be taken seriously, this is why we want to help our clients to achieve their goals, whether short or long term, by guiding them on their journey with personalised financial coaching.
Together with Financial Advisers, we will help clients identify the right solution that match their financial goals and objectives.
By understanding what they want their money to achieve, Financial Advisers will create a personalised plan to help them reach their goals.
Goal-based investing embraces multi-strategy portfolios that link to this new approach and are designed to deliver a vastly improved value proposition.
These portfolios are managed by top professionals whose mandate is to deliver performance.
This means that they are empowered to combine a wide array of uncorrelated strategies across all asset classes to ensure performance during any market cycle.
If the complexity of the markets is making you feel uneasy, like perhaps you are missing out on something or you are perhaps too committed to something else, a goal-based approach simplifies this.
You state what you want, and between your Asset Manager and your Financial Adviser, you’ll be guided with a plan that will manage your money through a portfolio that uses different strategies available to maximise your investment potential.
This article does not constitute tax, legal, financial, regulatory, accounting, technical or other advice. The material has been created for information purpose only and does not contain any personal recommendations. While every care has been taken in preparing this material, no member of Liberty gives any representation, warranty or undertaking and accepts no responsibility or liability as to the accuracy, or completeness, of the information presented. Please consult your financial adviser should you require advice of a financial nature and/or intermediary services.
Liberty Group Limited is a Licensed Insurer and an Authorised Financial Services Provider (no 2409).