Investment Matters

Issues to be aware of affecting Financial Planning and Wealth Management

This section provides information on important matters affecting investments, including:

• Common marketing ploys (strategies to make you think the “advice” is better than it is)

  There is strong and increasing competition among financial companies to get your business.  Some promotions are carefully tailored to hook the public. Here are a few of the common ploys, which a critical analysis should unmask:

  • Playing on people’s emotional response to risk
  • Showing wealth projections in nominal returns instead of after-inflation returns
  • Using unrealistically high returns
  • Projections using gross return instead of net after-tax return
  • Not benchmarking a review of past performances
  • Not showing the opportunity cost of alternative strategies
  • Are the share markets “efficient”?
  • Behavioural finance (why do most people make such poor financial decisions?)

Archimedes Financial Planning provides this information because we prefer our clients to be fully informed about wealth management and their financial investments.

There are some financial advisers who will use these ploys but we use logic, not emotion, to choose a strategy that will have more chance of giving you the returns you're after.

We choose an analytical approach to assess the basis of risk and reward, giving you the right strategy.

Our ongoing quantitative analysis allows you to understand the tradeoffs, and risk/reward relationship.  We are not in the business of primarily making money for ourselves. Rather we believe that if our clients are successful, then so will our business be.