We add 4-5% of Value

09/09/2022

Crafting a meaningful financial plan is more difficult than many realise, and adhering to that plan is even more challenging.

Independent studies by Vanguard, Russell Investments and Morningstar show individuals who work with a good financial adviser receive meaningfully greater returns over the life of their portfolio - value well in excess of the cost. Advisers add value in many ways, from cost effective investment implementation to strategic withdrawal strategies. But where they add the greatest value is being an accountability partner, helping you navigate the joys and challenges of life.

Our Value Proposition

1. Fiduciary Relationship

We put your interests first, every time.

As a Fiduciary we have a legal and ethical obligation to put our clients' interest first. Not all financial advisers are held to this high of a standard, and is often not clear which advisers work this way. In fact, many "broker/dealers" are held to what is called the Suitability Standard, a much lower quality of care. With this lower standard, expat investors are often sold expensive financial products that generate high commissions for salespeople, many times unknown to the client.

2. Financial Planning

Proper life planning that aligns your goals with your investments.

We integrate your financial plan with your investment portfolio. It is critical these two aspects are aligned properly. The investments are the tools we use to accomplish your life goals. Having a written, clearly defined plan helps eliminate some of the worst investor behaviours we encounter. Without a plan, how can you track your progress or know if you are off-track and need to adjust? Having a financial plan provides serenity during market volatility, keeping you focused on the plan and ultimately providing the best chance of success.

3. Better Portfolios

An investment philosophy that is consistent, academically based, and objective.

Central to any financial plan is the investment strategy. At the heart of our investment philosophy is a portfolio theory which attempts to maximise the portfolio return for a given amount of risk. We accomplish this by utilising asset allocation to determine the efficient portfolio and then customise each client's portfolio given their own level of risk tolerance and risk capacity.

Research has proven time and again that asset allocation is by far the primary determinant of total return. Each portfolio is monitored and re-balanced continuously to maintain that optimal asset allocation. This disciplined approach has repeatedly been proven to achieve optimal investment returns over time.

The investment vehicles we utilise are low-cost, tax-efficient, and highly diversified funds, which look to capture factors of higher expected return through advanced portfolio design and management. These funds are only available through a select group of advisers.

4. Cost Effective Implementation

It starts with utilising lower cost funds but doesn't end there.

We are always looking to lower our clients' overall costs. Part of keeping costs down is taking into account the investment options you have already in place and building the most efficient portfolio possible. We practice smart techniques by aggregating purchase orders, using limit orders, and being patient (and smart) with our implementation.

5. Tax Management

Taxes are a part of everything you do financially, and your plan should reflect it.

Always being tax conscious is another area to unlock real value and lower our clients' overall costs. Not only can our third party relationship prepare your annual tax return but we also utilise asset location strategies, perform tax loss harvesting, are cognisant of when and how to take capital gains, and craft a strategic withdrawal strategy all focused on limiting the tax drag on our portfolios. Ultimately leaving more available to you during retirement and your beneficiaries.

6. Behaviour Management

Investors' greatest threat to success is themselves.

Proven through numerous studies, the single greatest threat when it comes to investing is the investor's own bad behaviour. These threats come in the form of lack of discipline, cognitive biases, and emotional errors. In many instances, investors don't even realise they are making a mistake. The key to avoiding these costly mistakes is to have a written financial plan in place with a dedicated adviser to help guide you through life's challenges and market volatility. Warren Buffet once said, "Investing is simple, but not easy."

7. Ongoing Monitoring

A financial plan requires monitoring and tracking to be successful.

We monitor your portfolio to ensure your investments are aligned with your financial plans goals and objectives. For many expat investors it can be a challenge separating the noise from real issues. At Expat Wealth At Work we use rule based parameters to initiate portfolio changes; removing the subjective, emotional aspect of planning and investing. Changes to a portfolio should always be a result of changes in a client's circumstances, never as a response to market conditions.

We add 4-5% of Value. Contact us today for a conversation: hello@expatwealthatwork.com