The Archimedes Methodology

Empowering the client
so they make informed decisions

We have a structured approach to providing financial advice that empowers our client.

At the start of the advice process, we take clients on an educational journey so that you are able to make an informed choice, given the pros and cons of alternative strategies. This decision-making process is important because nobody knows what the future will bring.

Investment recommendations are supported independent research from major research companies such as van Eyk, Lonsec, Standard and Poors, Aegis and other sources including Assirt Library, Australian Bureau of Statistics and the Reserve bank of Australia.

To help decide between alternative strategies, we often talk in terms of probabilities of various outcomes and the range of the expected returns from the short to long terms. (This uses monte-carlo modelling of financial outcomes with Expected Monetary Value EMV to decide upon the best strategy. Clients don’t have to understand the intricacies of this process, but should take comfort there is scientific rigour behind our analyses).

For conventional asset sectors, we have a strong preference to use wholesale managed funds and as appropriate direct equities. Unlike retail managed funds, wholesale managed funds have no entry/exit fees and do not pay a trailing commission. This ensures that recommendations are not influenced by rates of commissions.

Wholesale investments and direct equities are administered by the Asgard Master Trust. Archimedes Financial Planning has no ties to Asgard, instead uses Asgard because it has the broad range of investments required to implement Efficient Frontier portfolios.

There is usually a lot for a client to absorb in this initial phase (take comfort that once it is all decided, clients get on with their own lives while we manage the process and make regular reports!).

This initial phase can progress quickly (eg 1-2 weeks) or at a more measured rate (eg 1-3 months). Since we are developing a very long-term plan, clients understand that a quick plan is unlikely to be a good plan because alternative strategies haven’t been explored in sufficient depth.

The planning process proceeds in three main stages:

1. Initial No-obligation Stage: client provides a snap shot of their circumstances so we can provide a fixed fee quote for the Strategy Stage
2. Strategy Stage: educational material, consider alternative strategies
3. Decision Stage: client makes informed decision how they wish to proceed, given the benefits and costs of many alternative strategies discussed in the Strategy Stage.

See the attached file for more details about this process.

A final comment: we are flexible and will adjust this process with a client that has different needs or expectations. Talk to us about your circumstances.