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RVW WealthCare Principles of Investment Success

Possibly one of the most important aspects of investment success is to remain committed to your long term plan.

Here at RVW WealthCare we believe that investment success is best achieved when you focus on what you can control.

It can be very easy to fall into the trap of focusing on the daily commentary regarding the financial markets, the news regarding the global economy and reading the latest “expert comments”p; on the flavour of the month investment. The danger of falling into the trap could lead to you overlooking what we believe are the 4 basic principles of investing successfully.

Our principles are based around ensuring we and our clients focus on what we can actually control and influence, whilst reducing the noise from external sources.

Principle 1 - Establish the investment objective (the Goal).

The first of the four principles to achieving investment success is to establish clear, measurable goals and consider the timeframe for achievement. This will also involve setting the necessary benchmarks and review periods to ensure they are measured, as agreed, moving forward. We can use powerful cash flow planning software to help you map out what this looks like, which helps you visualise your own investment plan over the years to come.

Once we establish what your individual goals are we can move forward and look at finding the right balance.

Principle 2 - Finding the right balance.

Asset allocation is a key driver in achieving investment returns and will be critical to you achieving investment success. Here we will look at your attitude to investment risk and consider your capacity for financial losses. Can you afford to take the risk needed to meet the objective by the set date? Do you need to take the level of risk you are comfortable with in order to meet your investment objective?

Once we have established these facts we can consider selecting a suitable balance of diversified investments with you.

Principle 3 - Reducing the costs.

Price is an important consideration when formulating investment plans, but it should not form the key driver in the decision process. The cheapest tracker fund isn't necessarily the best and likewise the most expensive actively managed fund won't necessarily deliver the enhanced returns promised. As with most things in life, it is about finding the right balance. But one thing is certain when it comes to costs, the more you pay out in charges, the less of the returns you will keep.

Using our Core & Satellite approach to investments, that blends both passive and active investment options, we can help you ensure you maintain the quality needed without paying out more in charges than you need to.

Principle 4 - Stay the course.

Possibly one of the most important aspects of investment success is to remain committed to your long term plan. We are often told the aspect of our services clients appreciate the most is the time we spend with them once plans have been implemented, ensuring they maintain the discipline during the course of the investment. We make sure you do not panic during a market downturn, nor become too ambitions during the good years, when returns are high. Many of our clients have investment terms of 20 years and beyond and our role, via the regular review process, is to help you navigate the investment world whilst remaining committed .