Private Wealth Division

Whether we choose to accept it or not, money has a significant influence on our lives and that of our families. Over time, it is this influence that slowly cultivates our personal attitudes towards money, how we spend, how we save, how we invest, how we borrow, and how we give.

 

In the Private Wealth Division at Stanford Brown, we specialise in matching your personal attitudes towards money with your unique financial goals (whether you know them already or need our help to define them). Once we document these goals and have an intimate understanding of them (critical), we work tirelessly to design and maintain an integrated investment strategy that has a sole purpose of satisfying your personal goals.

OUR INVESTMENT METHODOLOGY

The traditional financial planning model states the following incontrovertible truths:

– Markets are efficient and can’t be predicted
– Bubbles don’t exist
– Equities always outperform in the long run
– Past returns are a great guide to future returns and
– It’s about ‘time in the market not timing the market’

This financial planning strategy can be loosely summarised as ‘Buy, hold, charge handsomely and go play golf.’

At Stanford Brown we believe that:

– Past returns are often a terrible guide to future returns
– Bubbles regularly form
– The madness of crowds is endemic
– Investment product commissions are evil
– Long term returns are more predictable than short term
– Knowing what your mates at the club have done can really hurt you

What our clients have told us they are looking for in a 'Private Wealth Adviser' .....

  • Care & Respect

    “I want an adviser who treats my money with as much care and respect as if it were their own”

  • Discipline & Clarity

    “I want an adviser who doesn’t coerce me into the latest craze, uses a structure that is logical, and recommends investments that I understand.”

  • Don't pretend to understand

    “I want an adviser who understands our plan, how we got here, and takes time to acknowledge our fears.”

  • Trust

    “I want an adviser I can trust – who puts my interests first.”

  • Be there for the long haul

    “I want an adviser who doesn’t forget me after the first few months, and takes an interest in my families long-term financial health.”

  • No Surprises

    “I don’t want surprises – I want an adviser that doesn’t hide their fees and provides me with value in return”

OUR THOUGHTS ON WEALTH CREATION

In simple terms, wealth creation is a framework for growing a portfolio. To do so, most professional and amateur investors alike focus 90-100% of research time and effort on the underlying investment …whether to hold cash or bonds, BHP or CBA. At Stanford Brown, we argue that the underlying investment is the last item that is focused on in the wealth creation process, and in-fact one of the most unlikely elements in achieving a satisfactory rate of return. Here is why:

Firstly, structured incorrectly, a portfolio can pay up to the highest marginal tax rate unnecessarily. There is no logical argument why hours should be spent designing, maintaining and monitoring a portfolio for the sake of a 2, 3 or 4 percent outperformance only to needlessly give half of it back to the tax office. Sound structure and correct ownership in the right vehicle is critical to wealth creation success.

Secondly, a portfolio unlinked to personal goals and purpose is a portfolio that potentially breeds poor decisions. So much of what we do is about providing clients with a disciplined approach helping them make informed decisions that increase the likelihood of positive outcomes. When markets are rallying and economies are strong, this discipline comes in the form of controlling euphoria, resisting the urge to buy into the latest craze. When markets are bearish and economies are weak, this discipline comes in the form of preventing a panic decision.

So why does purpose help in preventing poor investment decisions? Because if one thing is certain, it is that markets will continue to crash in the future, and they will also have times when they boom. The market cycle will always prevail in the long run. Understanding your purpose lets us understand your attitudes towards money and your likely reactions to market or life events, so that we can help you make smart money decisions at key trigger times to keep you on track with your end goals.

Knowing the higher purpose of your portfolio requirements lets us focus on tangible goals at decision junctions, rather than basing decisions on a never-ending relentless pursuit of bigger and bigger returns. In over 25 years, it has been the former that has produced superior outcomes.

To speak with a Private Wealth Adviser

Contact Us 02 9904 1555

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