Why invest with us
Some investors may have goals such as ensuring they have enough income to live off in retirement and ensuring their money grows so that they can afford to take regular holidays in retirement. Alternatively, they might like to do all of that and also leave some money for their children or grandchildren.
Just as you may have different bank accounts for different purposes, such as a savings account or a holiday account, it makes sense that your clients may be invested in different investments aimed at meeting different goals.
Once your clients' goals are identified you can then look to investment solutions that are targeted at meeting those particular goals.
A goals-based approach to investing is beneficial to investors because it puts them in the driver’s seat as they are actively involved in the decision making process. The success of a goals-based strategy is not about outperforming benchmarks or competitors. Success is measured by how well an investor’s portfolio is tracking against a stated goal. It’s about being more relevant to investors and their needs, not only in terms of product design but in terms of communications and reporting.
By focusing on how an investment is on track to meet investors’ needs, it should help investors fight the urge to respond inappropriately and irrationally when markets aren’t performing as they might expect.
The three broad categories
Although clients may have very different goals depending on what life stage they are at, their goals can be broadly categorised into essential needs, lifestyle wants and legacy aspirations.
- Essential needs - The majority of people’s money is generally focused around this goal. Investment solutions for these needs will aim to deliver a predictable, regular, sustainable income stream that is expected to rise with inflation over time.
- Lifestyle wants - Helping your clients live the life they want. For many clients, maintaining their lifestyle in retirement is very important. Investment solutions for these goals will generally aim to grow people’s wealth steadily over time while looking to soften the impact of severe market falls.
- Legacy aspirations - Helping your clients leave the legacy that they want. With their essential needs already met, people may look to maximise the growth of any money they have set aside. Investment solutions for these goals will be higher growth solutions and look to grow people’s money over the long-term.
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This information is solely for the use of the party to whom it is provided and must not be provided to any other person or entity without the express written consent of National Mutual Funds Management Ltd (ABN 32 006 787 720, AFSL 234652) (NMFM).
While every care has been taken in the preparation of this information, NMFM makes no representation or warranty as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This document has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this document, and seek professional advice, having regard to the investor’s objectives, financial situation and needs.
ipac Asset Management Limited ABN 22 003 257 225, AFSL 234655) (IAML) is the responsible entity of the fund(s) and the issuer of the units in the fund(s) and the Product Disclosure Statement(s) (PDS). To invest in the Fund(s), investors will need to obtain and consider the current PDS or other offer document for the relevant Funds(s) available at amp.com.au/investments-pds. The PDS or offer document contains important information about investing in the Funds(s) and it is important that investors read the PDS or offer document before making a decision about whether to acquire, or continue to hold or dispose of units in the Funds(s). A target market determination has been made in respect of the Funds(s) and is available at www.amp.com.au/investments-tmd. Neither IAML, NMFM nor any other company in the AMP Group guarantees the repayment of capital or the performance of any product or any particular rate of return referred to in this document. Past performance is not a reliable indicator of future performance.
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