When we are happy to say goodbye
In fact, we welcome this goodbye as it means one more Australian investor is on the path to personal prosperity.
We understand that saving for a house, your child’s education, your retirement or that holiday you always wanted takes time and investment fortitude.
So how have clients done this?
To quote Warren Buffet, “the stock market is designed to transfer money from the active to the patient,” this resonates with many successful investors and is a mantra we at InvestSMART try to instil in our clients.
We hold this mantra because history shows the market will always work in your favour over the long-term and although there is risk, you are more likely to achieve your personal financial goal faster, through sensible investing rather than holding cash.
Take InvestSMART’s Balanced Portfolio as an example. It offers a blend of defensive income assets and capital growth assets and has a yield of approximately 3.4 per cent (compare this to the average 12-month term deposit of 1.9 per cent) with an average yearly total return of 6.9 per cent since inception.
Its 4-plus year investment timeframe replicates the timeframe people have for building a house deposit. Through offering an even allocation across lower risk assets such as fixed income, with higher growth assets such as shares and property, investors can hedge both their risk and growth while reaching their goal in a timely manner as this 6.9 per cent compounds their return.
This strategy is a far more efficient way of achieving your personal goals than leaving (house deposit) money in a bank and accumulating interest.
This is why, when clients come to us having persisted with the recommended investment strategy and time frame and have reached their financial goal, their withdrawal request is music to our ears. It means they have not only achieved their objective, but they are also on a stronger footing when they return to invest.
So, whether you’re joining InvestSMART with the intention of saving for your first house, or sending your child through school, regardless of your goal, when you leave us equipped with the capital needed to achieve your financial goals, we’re happy to say goodbye.
Frequently Asked Questions about this Article…
InvestSMART is happy when clients withdraw their investments because it signifies that they have achieved their financial goals, such as saving for a house or a child's education, and are on the path to personal prosperity.
InvestSMART's Balanced Portfolio helps investors by offering a blend of defensive income assets and capital growth assets, providing a yield of approximately 3.4% and an average yearly total return of 6.9% since inception. This strategy allows investors to hedge risk and growth, making it an efficient way to reach financial goals.
InvestSMART recommends a patient and sensible investing strategy, as echoed by Warren Buffet's mantra that the stock market transfers money from the active to the patient. This approach, combined with a balanced portfolio, is more likely to help investors achieve their financial goals over the long term.
InvestSMART's Balanced Portfolio offers a yield of approximately 3.4%, which is significantly higher than the average 12-month term deposit rate of 1.9%. This makes it a more attractive option for investors seeking better returns.
The typical investment timeframe for InvestSMART's Balanced Portfolio is over 4 years, which aligns with the timeframe many people have for building a house deposit or achieving similar financial goals.
Investing in a balanced portfolio is more efficient than saving in a bank because it offers higher returns through a combination of defensive and growth assets, allowing investors to reach their financial goals faster than simply accumulating interest in a bank account.
InvestSMART's Balanced Portfolio includes a mix of lower-risk assets like fixed income and higher-growth assets such as shares and property, providing a balanced approach to risk and growth.
InvestSMART supports clients by providing a well-structured investment strategy, encouraging patience and sensible investing, and offering portfolios like the Balanced Portfolio that are designed to help clients reach their financial objectives efficiently.