I’ll help you to align your investments to your plan within a framework that makes sense via a simple four step process:

1. Whisky & water!

The first step is to help you decide the right blend of risk (whisky) and defensive (water) assets for you, taking into account the level of risk you feel comfortable in taking, the level of risk you need to take and the level of risk your plan is able to withstand without it being derailed. They may not all be aligned so trade offs may need to be made to manage your expectations and behaviours.

2. Keeping costs low

I believe the key criteria to experience a successful investment journey is to keep costs as low as possible (so as to capture as much of the returns as possible) and to be globally diversified across high quality liquid funds.

The investment solutions which Ontrak recommends are centred around this philosophy and range from simple “all in one” solutions wrapped within a single fund, to more sophisticated evidence based solutions with tilts to certain factors, including companies with more sustainable credentials.

Depending on your preferences and motivations Ontrak also recommends solutions which aim to deliver a positive and beneficial impact to our planet and society.

At this stage, I will also select the most appropriate investment wrappers to use (ISA’s, Pensions, etc.) based around your tax position and available allowances.

3. Rebalancing

Rebalancing is the means by which the risk characteristic of your portfolio is kept in check. If left unattended your portfolio may increasingly become overpowered by the riskier assets with the result that you may be taking more risk than you are willing to take. It also has the potential to enhance returns forcing your portfolio to sell high and buy low. Via Ontrak’s specialist investment partners, portfolios are rebalanced via a clever tolerance band system, rather than on a calendar basis. Evidence shows that this approach delivers better returns.

4. Investing for the long term

Investing is a life long journey. The capital markets reward long term investors. Sadly, most investors don’t benefit from the returns markets deliver (see below). Their behaviour gets in the way because they try to find anomalies and time the markets which never works consistently over time.

I’ll help you to avoid this, to stay invested and let the markets do the heavy lifting work for you. There will be ups and downs along your journey and in the event of a market downturn I will give you fortitude to stick with the strategy so you avoid potentially wealth damaging decisions by selling at the wrong time.

When it is anticipated withdrawals will be taken from your portfolio, I’ll create a bespoke withdrawal strategy based on your cash flow needs, adjusted regularly so as to ensure your portfolio does not run out before you do!

The impact of poor decisions

Not having a coherent investment strategy can be truly damaging to your wealth. Research by Morningstar reveals that the average difference on an annual basis between the returns of an investment and those that the average investor receives is -2.5%. This difference is the direct result of poor buying and selling decisions.

Our specialist investment partners

To be able to offer these solutions cost effectively and to enable me to focus on managing your bigger picture strategy I have secured the expertise of a panel of specialist investment partners. They provide solutions of far higher quality than could be produced in-house. Rest assured, I will maintain control over your investment strategy so you do not have to deal with anyone else.