At Griffiths Wealth, we believe in helping everyday families in Newcastle grow and protect their wealth. That’s why our CARE Investment Philosophy is designed to work in the real world, where negative investor behaviour is the biggest risk to your investment portfolio, superannuation and retirement.
CARE can be split into four unique aspects, or buckets, that work together to secure your financial future while ensuring you’ll never have to worry about your money.
Traditional investment theories are focused on where assets are allocated, with a minor emphasis on market timing and selection. The CARE Investment Philosophy, on the other hand, is made up of three key areas: investor behaviour makes up 50% of this; asset allocation 45% and timing and selection 5%.
CARE is designed from the ground-up to provide you with investment opportunities that will weather any fluctuation in the market.
Currently, there is over $1,005 million invested utilising the CARE Investment Philosophy, with individual portfolios varying from $60,000 to $15 million.
The CARE process has three main aims:
And, as a bonus, it provides you with a cost effective way of managing your money.
In other words, you’ll never have to lie awake at night worrying about your investment portfolio again.
Each CARE bucket plays an important role in securing your financial future and growing your wealth. Depending on your personal goals, the length of time left until your retirement and your aversion to risk, the percentage of your portfolio invested into each of the buckets will be different.
That means, with CARE, your investment strategy will always be uniquely tailored to you and your specific financial goals, wants and needs.
Core Investments includes a mix of multi-sector and multi-managed funds that form the base of your portfolio. This part of your portfolio includes a strategic mix of Australian shares and bonds, Exchange Traded Funds (ETFs), Index Funds, overseas shares and bonds, property and other income-producing assets.
The Core bucket is intended to be as diverse as possible so you can rest easy knowing it will hold through the normal ups and downs of the markets, as well as the extremes.
Active Investments forms a part of our philosophy where we attempt to do the opposite of what most people do. When a market gets ahead of their long-term average, we remove you from that market and move your investment allocation to cash. When markets are under their long-term averages, we then take that cash and invest fully again.
This part of CARE is intended to smooth out the inherent volatility of each market sector in your portfolio and provide you with a steady, consistent return overall.
The individual sectors where we move between cash and being fully invested include:
The Reserves aspect of our philosophy means that, if you're retired, we keep 4 years worth of your spending needs in cash, term deposits and low volatility investments. This aspect of your portfolio is focused on reducing the likelihood of you having to sell your assets if the market experiences a decline.
This bucket is also being filled up each year by the income produced from other assets, so in reality you could have access for up to 7 years of income without ever having to sell your prized assets.
The Reserves and Risk Management bucket offers liquidity in your investment plan, providing an overall balance and cash flow that will allow you to weather any market crashes with confidence.
The Enhanced Returns part of the CARE Philosophy is based on using a high focus direct share portfolio to provide you with a consistent income that has the tax already paid through franking credits on Australian shares.
The shares chosen for this aspect of your portfolio are generally blue chip. In other words, they have a consistent track record, good cash flow, low debt levels, good dividends and strong management and prospects.
As a whole, this part of your portfolio is intended to provide stability and pay out regular dividends.
The CARE Philosophy is based on one simple principle: that smart investor behaviour results in positive investments that will help you grow your wealth.
But what exactly is smart investor behaviour?
To understand what smart investor behaviour is, you need to be familiar with the DALBAR Study. The original DALBAR Study found that the average return from the top 500 U.S. listed companies between 1980 to 2000 in the U.S.A was 12%. In contrast, the average return for investors over the same period was 4%.
So, what was the cause of that 8% difference?
Three words: bad investor behaviour.
The DALBAR Study found that the average holding period by investors who claimed they were investing for the long term was just over 3 years. It was found that market decline caused these investors to panic and sell at the wrong time based upon world events happening at the time that were out of their control. The result: consistently lower returns than those investors who were patient and planned for the true long-term.
At Griffiths Wealth, we have a long-term focus that ensures your Financial Adviser will work together with CARE to ensure your financial dreams are on track to become your financial reality.
We know you’ve worked hard to grow your wealth, that’s why the CARE Investment philosophy will work even harder to ensure your financial future is secure, no matter what happens.
To put it simply, the CARE Investment Philosophy is:
But CARE is more than an investment strategy, it’s the foundation of a community of like-minded individuals.
By investing with CARE, you’ll gain access to these individual services:
These benefits are all available in addition to the support offered by Griffiths Wealth.
As part of our ongoing commitment to helping you create your dream financial future, our team:
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Richmond Advice Pty Ltd | ABN 43 607 220 066 trading as Griffiths Wealth is a Corporate Authorised Representative 1255274 of GPS Wealth Ltd | ABN 17 005 482 726 | AFSL 254 544 | Principal Address Level 15, 115 Pitt St Sydney NSW 2000
The information provided on this website has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your GPS Wealth Ltd (GPS) Adviser before you make any decision regarding any products mentioned in this communication. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither Griffiths Wealth, GPS nor their related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.
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