The Money Matters planning approach is based on diagnosing your requirements and recommending a strategy to achieve your goals. We follow five key steps:
First we clarify your current position. Determining where you are now provides a starting point for a plan. Next we clarify your goals. Many people do not set goals and those who do often make vague statements.
Rodger will explore three key responsible investment questions with you:
1. What are the important issues for you when considering investment?
2. Are there companies or industries you wish to avoid or invest in?
3. Do you want to foster engagement with companies by investing in them and communicating your environmental and social concerns to companies to encourage their continuous improvement?
Determining your risk profile is a key step in your investment plan. Risk and return can be seen as two sides of the investment coin, and you need to know where you sit on the risk/return spectrum. Rodger will talk this through with you and explain the subtleties involved in this important decision. Before or during your meeting with Rodger you can complete the risk profile questionnaire in the Money Matters Data Form. This asks a series of questions that help to determine your risk profile.
The fourth step in our process, asset allocation, involves choosing between cash, fixed interest, property and sharemarket investments, not only in New Zealand but also internationally. Rodger will explain key principles for a disciplined approach to allocating your assets and show you how the Money Matters responsible investment approach applies these to help you avoid the traps of market emotion and market timing.
Once it has been decided how much to invest in each of the asset classes, locally and internationally, the question then becomes one of determining how to select the particular investments in each of these areas. Given the need to manage risk through disciplined diversification across the different investment classes locally and internationally, the Money Matters' view is that managed investments offer a superior option to direct investment. Adopting a process such as the Four Ps - People, Process, Portfolio and Performance, helps to select leading fund managers that match your objectives.