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Discussion in 'Introductions' started by MJRoss, 10th Jan, 2008.

  1. MJRoss

    MJRoss Member

    Joined:
    10th Jan, 2008
    Posts:
    15
    Location:
    Melbourne, VIC
    Hi everyone,

    My name is Matt and I've just joined the forum. I am an independent financial planner and was referred to this forum by one of my best clients (thank you 'Retired Gentleman').

    Can I just say that the culture on this forum is fantastic. I hope that it can continue and not be spoiled by spam as other forums have (golf clap for the administrators).

    I will check in from day to day and put my two cents in. Great to see so many people taking responsibility for their own financial affairs. If you don't, the greedy financial institutions will take a piece of you for doing very little besides building a solid brand (and providing very expensive products that provide negative value!).
     
  2. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    Hi MJ!

    Great to have you on board. Accepting of course that everyone's risk profile and circumstances will differ, what are your thoughts on asset allocation at the moment?

    Cheers
    N.
     
  3. Tronc

    Tronc Active Member

    Joined:
    9th Jan, 2008
    Posts:
    27
    Location:
    ACT
    Hi MJ

    Can you clarify for me what you mean by 'Indepedent Financial Planner'? Just interested to gain more knowledge and compare to the Financial Planner that I am currently using.

    Cheers

    Tronc
     
  4. samaka

    samaka Well-Known Member

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    30th Sep, 2007
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    Location:
    Sydney
    He probably means he's self employed.
     
  5. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Location:
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    I think more specifically it means they are not affiliated with an institution or organisation which have their own products to sell (eg banks, fund managers, etc).
     
  6. JIT

    JIT Well-Known Member

    Joined:
    2nd Dec, 2006
    Posts:
    240
    Location:
    Melbourne
    MJRoss,

    Holy cow, your name sounds very familiar...are you one of Travis Morien's financial planners??

    If so, welcome aboard!

    There's a section called "Passive Index Funds and ETF's" that was created recently, and I know a few independent FP's like this sort of investment vehicle very much.

    If you're one of them, it would be great to hear your thoughts in this section.

    Thanks.
     
  7. MJRoss

    MJRoss Member

    Joined:
    10th Jan, 2008
    Posts:
    15
    Location:
    Melbourne, VIC
    Hi Nigel, I take a very simple and dull approach to asset allocation; once the risk profile is established and the asset allocation is set, you stick with it. I don't believe in tactical asset allocation (changing the asset allocation based on the current environment), because as I tell all my clients, I have absolutely no idea which asset sector will outperform all others this year (unlike all the magazines out this month!). The only time that we actively change a clients asset allocation is when their risk profile changes - which may often be because their goals have changed.

    I've read a number of other threads since joining the forum 24hrs ago, and the approach that many of the members of this forum take is the same as ours. Re-assess the asset allocation each 12 months (+ 1 day :)) and during that year, rebalance the asset allocation as new funds become available such as through distributions or new contributions (SGC to a super account for example).

    Our methodology is simple, disciplined but it doesn't mean it's easy because it means blocking out all the 'investment pornography' that you read in the paper each day.
     
  8. MJRoss

    MJRoss Member

    Joined:
    10th Jan, 2008
    Posts:
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    Location:
    Melbourne, VIC
    Hi Tronc, I'm associated with Travis Morien (who gets legendary status through these forums), and we are truly independent. It is more than just self-employed, we're not affiliated with an institution or organisation which have their own products to sell (eg banks, fund managers, etc) as Sim said but we're also a few of the only advisers in Australia that rebate all commissions on investments and insurance, 100% fee for service and our ongoing fees are not based on a % of your portfolio, but dollar based commensurate to the level of service you need.

    We're in the process of merging our businesses together and there are two other authorised rep's coming on in Canberra and Adelaide too. So there will be four advisers in our group, all providing advice in the manner above and adopting the passive approach that is discussed widely in these forums.

    We get very funny looks from other advisers when we make the point that we rebate commissions on insurance. They're reaction is 'why, you're giving up so much money' but being indepenent is what makes us different.

    We're in the process of building our new website (which will incorporate a lot of the information from Travis' existing site). I'd tell you the new name, but Simon told me no soliciting business :)
     
  9. MJRoss

    MJRoss Member

    Joined:
    10th Jan, 2008
    Posts:
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    Location:
    Melbourne, VIC
    Hi JIT, thanks for the warm welcome. Travis has told me to check out some of the forums and it was actually one of my current clients who pointed this one out to me (the thread that dkmc started titled 'Ive finally rejigged my portfolio to indexing' is fantastic).

    To answer your question JIT, we endorse the use of passively managed funds with all our clients. Travis came up with a term which he refers to as the 'Costs Matter Hypothesis' which says that to get higher returns one thing you need to do is to keep your costs low. Passive funds are low cost and very tax effective. This is not advice, it's all over the internet, it's just that it takes us all so long for the message to sink in! There are other things that you can do to get higher returns; refer to dkmc's thread - he/she is right on the money.
     
  10. JIT

    JIT Well-Known Member

    Joined:
    2nd Dec, 2006
    Posts:
    240
    Location:
    Melbourne
    Hi Matt,

    Actually, I would say the majority of investors here are very active in their approach, not passive. The 'passive index fund/ETF' section here is relatively new, and I think it is only a very small minority of investors here who are fully convinced/'converted' towards this investment approach, eg. dkmc, myself and a few others.

    Look forward to your contributions.

    Some of the active investors here seem like they've taken a bit of a hammerring in the last few weeks...

    Who knows, we might see a few more people here 'jump ship' and join us on the passive side of this investing fence!