Are we being preyed upon, using our own consumer focused mentality biases?

Why do we invest? Why would one gamble with our hard earned rands and cents?

As once we leave the risk-free world to seek higher returns, we assume some level of risk, uncertainty and perceived costs. Is it worth it? The only reasonable reason is to increase the potential to earn a higher rate of return.

What is the opportunity cost (gain) without thinking about our decisions critically? Decisions aren’t always only financial in scope. How are the tangible and intangibles taken into account?

It is an advice question that is generally mitigated by industry prescribed minimum requirements of risk profiling, cleverly worded “we are not authorised to provide financial advice” waivers. All of which I feel fail to grasp the ever increasingly need to deliver complex financial planning to clients.

If we know that we can invest in risk-free investments, why do anything else? The chart below is a hypothetical illustration of the growth of 10,000 at several rates of return over a 20 year time frame.

*Past performance in no way guarantees future investment results.

As Wealthcare Advisors, before investing, we believe that with a disciplined goal orientated financial planning strategy focusing on your personal, family and work related goals; financial “wealth” can be attained. A well-maintained portfolio is vital to any investor's success. This process allows them to see where they stand financially and determine what steps they must take to reach their objectives. Financial planning provides direction to financial decisions and gives insight on how each decision affects other financial areas of life. Viewing each financial decision as a whole allows one to consider its effects on short- and long-term goals.

We believe that once you have thoroughly reviewed your current financial situation and defined your financial goals and obligations, to best achieve long-term investment success is to following a systematic approach. Silke Financial Services is able to constructing portfolios which are aligned with your personal investment time-horizoned goals.

The Multimanager investment philosophy is uniquely client centric. Essential steps for taking such an approach:

Step 1: Determining Silke Model Portfolios required achieving your time-horizoned investment goals

Step 2: Achieving the Portfolio Designed in Step 1. Portfolio construction and maintenance efforts should focus on 3 main areas

Step 3: Choosing a Linked-investment Platform to manage the Portfolio Designed Required in Step 2

Step 4: Using a Multi-Manager Investment Strategy to Achieving the Portfolio Designed in Step 2

Step 5: Reassessing Portfolio Weightings

Step 6: Rebalancing Strategically

It's important to remember that these efforts and ideas are pursued in an effort to increase our chances for long-term investment success, but unfortunately offer no guarantee of doing so.

Are we being preyed upon, using our own consumer focused mentality biases? That's a question that deserves serious thought. Fascinating stuff! The more I learn about the brain, the more I realize it is not the smooth-running machine we'd like to think it is. It's said that 95% of our decisions are made on a subconscious level.

Regards,

Shane Thom, CFP® GTP(SA)™
Managing Partner: Integrated Wealthcare Advisor