FAQs

Do you service clients from around Australia?

Absolutely, we have many clients from all across Australia. With modern technology and the ability to video conference, distance is no longer an issue for meeting with existing and prospective clients.

What is evidence based investing?

It is a commitment to the belief that investment returns are derived from capital markets and not speculation. All available knowledge is priced into a security at any particular moment in time, so no one has the ability to gain an edge on any other participant in the market. The investment world has never appeared more complex and daunting. New financial products are regularly pushed at investors by salesmen and often without regard to personal circumstance. The media regularly bombards investors with notoriously short focused ‘glee’ or ‘panic’ stories. Then there are the unfortunate investors who’ve found themselves the victim of financial fraud.

It appears a discouraging landscape to navigate, yet it’s really quite simple. If you use an evidence based investment philosophy.  Acknowledge markets are unpredictable, but their rewards can be captured; if you don’t fall prey media distraction. If you don’t expose yourself to unproven methods, it is possible to have a successful investment experience.

At Schuh Wealth Advisers we don’t take unnecessary risks and we don’t adopt unproven strategies – we rely on evidence by focusing on what drives investment returns. When investing for clients we focus on these key principles:

  • A belief in capital markets

  • Risk and reward are related

  • Diversification reduces Investment Risk

  • Asset Allocation determines performance

  • Maintaining discipline

My friend is a client of another financial planner and has BHP, Woolworths, ANZ and thirty other well known companies in his portfolio. How come I’m not invested like him?

Your portfolio is invested across equity funds that are exposed to over 5000 different companies in Australia and across the world. This diversifies your risk across many industries, companies and countries which are at different stages of an economic cycle. Academic research has proven your friend’s portfolio is inherently risky because it’s exposed to singular companies in one country. Furthermore, despite holding 30 well-known companies your friend may not capture available growth, as well-known companies don’t always provide the best growth opportunities. Academic research has proven the best growth factors are attributed to small and value companies that often have growth ahead of them and offer the most attractive risk factors.

Will my superannuation still exist when I retire/will the government take my super?

While superannuation is government mandated, it is not held by the government, nor is it the government’s money. Your superannuation is your money. While you cannot access it before your retirement, it is still your money, basically held in trust. It’s in your best interests to have an active involvement in its direction because contrary to media reports, superannuation is not a blanket, one-size-fits-all product. Just taking control of your superannuation should increase your prospect of better returns.

My next door neighbour/cousin/workmate suggested I should invest in Company X. Should I follow their advice?

That decision should be considered against the long term investment credentials of your next door neighbour/cousin/ workmate. Acting on the latest ‘hot tip’ may seem like a good idea, however it’s an inherently risky proposition.