Personal Injury

Financial Planning

Investment Philosophy

Investment Philosophy

The way that Greenstone Financial Planning approaches investing is focused on you.

Our motivation throughout is to help you achieve your financial objectives for your new beginning.

The asset choices we make together will align with your personal values and what matters to you, as well as factoring in your investment objectives.

We work with you to understand your attitude to risk, helping you balance risk and reward.

The GFP philosophy – investments

We believe in a long-term, evidence-based approach, working with like-minded industry experts to create our investment portfolios.

It’s tried, tested and based on three fundamental portfolio practices.

1. Asset Allocation

2. Diversification

3. Rebalance

Portfolio mix or asset allocation means the types of assets that make up your portfolio – equities and fixed income products being the most common.

Experts have shown that the money you make (returns) on a portfolio depends primarily on the split between equities and fixed interest. This split has more impact on returns than anything else, including the underlying investment type or even when you invest in the stock market.

At Greenstone we help our clients to decide the mix of their portfolios based on

  • the risk they need to take to meet their objectives and
  • the risk they are comfortable taking according to their capacity for loss.

Sometimes these are very different.  For example, as we age, we become more risk averse because it’s difficult to go out and earn the money again.

This simply means ensuring you have a wide spread of each type of investment such as shares, fixed interest and property within a single portfolio. The more diverse your investment, the better you will be able to weather storms.  It’s about ‘not putting all your eggs in one basket.’

Your portfolio will change over time – some parts of it will increase in value and some will fall in value. This means that your portfolio can become imbalanced and more, or less, risky than you need or are comfortable with.

It’s important to rebalance your portfolio on an ongoing basis, as this will help you to meet your long-term objectives.

That’s the science behind investing but we know that there’s another, much more important element too: you.

The GFP philosophy – human behaviour

As human beings, we’re prone to making poor investment decisions because, well, we’re human and we have emotions.  

At Greenstone Financial Planning we encourage you to consider these three behavioural principles.

1. Faith in the future

2. Patience

3. Discipline

Looking back and comparing where we were with where we are now would suggest the future has better things to come. Technology will advance, people will live longer, businesses will expand and the stock market will, over the medium to longer term, go higher. It has always been so. 

We should bear this in mind when dealing with market corrections – a temporary bump in the road to our long-term investment goals.  Markets will recover, we just don’t know how and when so it’s important to be in the market rather than trying to time re-entering it. 

This kind of faith is critical for longer-term planning and making investment decisions that depend on how the market has behaved for the last 120 years.

For many of us, our financial plan and portfolio will be designed to last a few decades. Given this fact, if our life goals haven’t changed, then we shouldn’t be making significant changes to our plans or the portfolio.

Too many investors feel compelled to ‘do something’ about their investments when they hear the latest news or investment fad or their neighbour’s returns. However, studies have proved that frequent trading is detrimental to your portfolio’s performance.

Try to stay focused on what’s worked in the long run.  This is a marathon not a sprint.

Discipline is the ability to keep doing the right thing even when it feels wrong.  This may be difficult when everything you see and hear tells you that the world is coming to an end, but this is precisely when faith in the future comes into play. It reminds us that we have a long-term plan, and that given time, whatever crisis we’re experiencing will pass.

It is the application of these principles and practices that will ensure you are in a position to meet your goals and objectives.  That’s why, finding someone who is willing to sit alongside you and have those (sometimes) difficult conversations over the long term, is vitally important.

If you have any questions on the way we approach things and the way we ask you to approach things, please get in touch.

I know I would not be in this comfortable situation now if it wasn’t for Catherine’s unique combination of skills. And especially, those skills that you don’t think about in the world of finance - her insight and empathy.

SR

The Court of Protection department at Dean Wilson LLP has utilised the skill, experience, and expertise of Greenstone Financial Planning for many years. We have found Catherine and Natalya to be consistently diligent, caring, and proficient.

DW

Catherine’s approach to clients combines her absolute professionalism with her personable, kind nature.

JS