Understanding CARE

The CARE Investment Philosophy was created to give you the peace-of-mind that comes from knowing your financial future is secure without you having to be involved in every tiny detail.

Getting To Know The CARE Investment Philosophy

At My Wealth Solutions, we believe in helping everyday families grow and protect their wealth. That’s why our CARE Investment Philosophy is designed to work in the real world, where negative investor behaviour is the biggest risk to your investment portfolio.

CARE can be split into four unique aspects, or buckets, that work together to secure your financial future while ensuring you’ll never have to worry about your money.

Traditional investment theories are focused on where assets are allocated, with a minor emphasis on market timing and selection. The CARE Investment Philosophy, on the other hand, is made up of three key areas: investor behaviour makes up 50% of this; asset allocation 45% and timing and selection 5%.

CARE is designed from the ground-up to provide you with investment opportunities that will weather any fluctuation in the market.

Currently, there is over $1,005 million invested utilising the CARE Investment Philosophy, with individual portfolios varying from $60,000 to $15 million.

The CARE process has three main aims:

  1. To allow us to provide you with a straightforward way of understanding why you hold every investment in your portfolio.
  2. To give you the confidence that comes from knowing your portfolio will deliver the long term returns we need for you to reach and maintain your retirement goals.
  3. To work, and work well, in the real world where the biggest risk to your investment portfolio is investor mistakes, particularly when markets are at extreme highs or lows or periods of volatility.

And, as a bonus, it provides you with a cost effective way of managing your money.

In other words, you’ll never have to lie awake at night worrying about your investment portfolio again.

How The CARE Investment Philosophy Works

Each CARE bucket plays an important role in securing your financial future and growing your wealth. Depending on your personal goals, the length of time left until your retirement and your aversion to risk, the percentage of your portfolio invested into each of the buckets will be different.

That means, with CARE, your investment strategy will always be uniquely tailored to you and your specific financial goals, wants and needs.

The CARE Buckets

Core Investments

  • Core Investments includes a mix of multi-sector and multi-managed funds that form the base of your portfolio. This part of your portfolio includes a strategic mix of Australian shares and bonds, Exchange Traded Funds (ETFs), Index Funds, overseas shares and bonds, property and other income-producing assets.
  • The Core bucket is intended to be as diverse as possible so you can rest easy knowing it will hold through the normal ups and downs of the markets, as well as the extremes.
  • Clients with an investment balance of less than $60,000 will have the majority of their money invested in this bucket while they continue to grow their wealth.

Active Investments

  • Active Investments forms a part of our philosophy where we attempt to do the opposite of what most people do. When a market gets ahead of their long-term average, we remove you from that market and move your investment allocation to cash. When markets are under their long-term averages, we then take that cash and invest fully again.
  • This part of CARE is intended to smooth out the inherent volatility of each market sector in your portfolio and provide you with a steady, consistent return overall.
  • The individual sectors where we move between cash and being fully invested include:
    • Australian shares
    • Global shares
    • Emerging markets
    • Small companies
    • Gold

Reserves and Risk Management

  • The Reserves aspect of our philosophy means that we keep 4 years – if you’re retired, or 2 if you’re not – worth of your spending needs in cash, term deposits and low volatility investments. This aspect of your portfolio is focused on reducing the likelihood of you having to sell your assets if the market experiences a decline.
  • This bucket is also being filled up each year by the income produced from other assets, so in reality you have access to 7 to 10 years of income without ever having to sell your prized assets.
  • The Reserves and Risk Management bucket offers liquidity in your investment plan, providing an overall balance and cash flow that will allow you to weather any market crashes with confidence.

Enhanced Returns

  • The Enhanced Returns part of the CARE Philosophy is based on using a high focus direct share portfolio to provide you with a consistent income that has the tax already paid through franking credits on Australian shares.
  • The shares chosen for this aspect of your portfolio are generally blue chip. In other words, they have a consistent track record, good cash flow, low debt levels, good dividends and strong management and prospects.
  • As a whole, this part of your portfolio is intended to provide stability and pay out regular dividends.

Understanding Investor Behaviour

The CARE Philosophy is based on one simple principle: that smart investor behaviour results in positive investments that will help you grow your wealth.

But what exactly is smart investor behaviour?

To understand what smart investor behaviour is, you need to be familiar with the DALBAR Study. The original DALBAR Study found that the average return from the top 500 U.S. listed companies between 1980 to 2000 in the U.S.A was 12%. In contrast, the average return for investors over the same period was 4%.

So, what was the cause of that 8% difference?

Three words: bad investor behaviour.

The DALBAR Study found that the average holding period by investors who claimed they were investing for the long term was just over 3 years. It was found that market decline caused these investors to panic and sell at the wrong time based upon world events happening at the time that were out of their control. The result: consistently lower returns than those investors who were patient and planned for the true long-term.

Investment Return Breakdown

Unlike traditional investment strategies, the CARE Philosophy believes that investor behaviour has a significant effect on the percentage of your returns.

The following is an example of how the factors affecting your returns are structured according to the CARE Investment Beliefs in comparison with traditional investment beliefs:

We believe that 50% of your returns are impacted by your investor behaviour, with bad investor behaviour leading to a decrease in returns. That’s why, through the CARE philosophy, we aim to stop bad investment decisions being made in down markets and prevent the dangerous DALBAR cycle from destroying the wealth you’ve worked hard to create.

Why CARE?

At My Wealth Solutions, we have a long-term focus that ensures your team of expert financial advisors will work together with CARE to ensure your financial dreams are on track to become your financial reality.

We know you’ve worked hard to grow your wealth, that’s why the CARE Investment philosophy will work even harder to ensure your financial future is secure, no matter what happens.

To put it simply, the CARE Investment Philosophy is:

  • Designed to weather any market fluctuations
  • Aimed at growing your wealth for the long-term
  • Designed to grant you the peace-of-mind that comes from knowing your financial future is secure
  • Overseen by a team of expert Australian financial professionals with over a century’s worth of combined experience

But CARE is more than an investment strategy, it’s the foundation of a community of like-minded individuals.

By investing with CARE, you’ll gain access to these individual services:

  • Quarterly economic updates with Emmanuel Calligeris
  • An annual CARE lunch where you’ll be able to meet the members of the CARE Investment Committee
  • Regular Investing With CARE seminars
  • Those with over $1 million invested in CARE will receive a personal invitation to half-yearly economic updates

These benefits are all available in addition to the support offered by your team of financial experts at My Wealth Solutions.

As part of our ongoing commitment to helping you create your dream financial future, our team:

  • Maximises the probability of your achieving your financial goals
  • Is here to assist you at all times in making smart financial decisions
  • Will be continually monitoring, adapting, evolving and adjusting to any legislative or market changes as well as any changes to your circumstance
  • Can connect you to our extensive network of like-minded professionals that share the same core values and dedication to your financial success
  • Will continue to adjust and realign your strategy in our review meetings with you as you reach financial milestones throughout your journey

Your CARE Team

The My Wealth Solutions advice team works closely with the CARE Committee to make sure that your investment portfolio is working to help you achieve your short, medium and long-term financial goals.

The CARE Committee, like My Wealth Solutions, has one primary role: to protect and grow your wealth. That’s why CARE is overseen by a team of industry experts who liaise with our high-quality Australian investment provider partners.

Together, your investment advisors and the CARE Committee work to provide you with the peace-of-mind that comes with knowing your investment portfolio is in expert hands.

Your CARE Investment Advisors

Ben Budge

Ben is My Wealth Solutions’ Senior Financial Advisor and has a long history of helping everyday families achieve financial security. Due to his many years of industry experience, Ben is highly equipped to manage your investment portfolio.

Guy Freeman

Guy is the Managing Principal with 15 years of industry experience at My Wealth Solutions and works closely with the rest of the team to help our clients achieve their financial goals.

Nikki Booth

Nikki is a Financial Advisor at My Wealth Solutions who specialises in helping our clients successfully manage their wealth to meet their financial goals. Nikki graduated from QUT with distinction, majoring in Finance and Accounting.

Rob Creaton

Rob is one of your Financial Advisors at My Wealth Solutions and specialises in helping everyday families achieve financial security through smart investing. Rob is dedicated to managing our clients’ wealth and helping them meet their goals.

The CARE Investment Committee

Emmanuel Calligeris

Emmanuel is the Chairman of the CARE Investment Committee and holds a degree in economics and previously had 20 years’ experience as Chief Investment Officer for OnePath Investments, responsible for $13 billion of funds under management.

Rob McGregor

Rob was a founder of GPS Wealth, developed the CARE Investment Philosophy over the last 15 years and successfully managed $100m in clients’ funds during the GFC.

Grahame Evans

Grahame is the Risk and Compliance member of the CARE Investment Committee. Grahame brings over 35 years of financial service industry experience.

Dr. Mark Brimble

Mark is an independent member of the CARE Investment Committee. Mark holds a doctorate in capital markets and is keenly interested in investor behaviour.

CLIENT TESTIMONIAL

I contacted Ben Budge to provide a holistic review of our financial position, including investments, superannuation and retirement planning. Ben provided a summary of our financial goals, along with how our strategies aligned with those objectives…which was great for motivating us to make some changes…I would consider Ben to be very professional and friendly, and I’d recommend him to anyone seeking to secure their financial and retirement planning.

Ian J.
CLIENT TESTIMONIAL

My experience with Guy Freeman has been totally professional and totally satisfactory. Guy has managed my small investments but maintained at the same time a personal interest in my health and well being… I have to say that I have complete trust in Guy and am so pleased he is looking after my investments giving me a secure future.

Jennette B.
CLIENT TESTIMONIAL

Guy…was also the most helpful and friendly of all the advisors. The quick responses and helpful, friendly advise has been a mainstay of our dealings with Guy and MWS. We have been very satisfied with the financial advice given. They helped us to consider matters like income protection, super funds and life insurance that we had very little knowledge about. Guy has also been able to give us a focus for our savings and investments going forward into the future.

Brendan N.
CLIENT TESTIMONIAL

Guy has been most helpful from the first meeting and still continues to ensure I am kept in the loop with everything in regard to my financial position. Guy sorted my super and has ensured my insurances are relevant to my current position. Highly recommend MWS.

Scott H.
CLIENT TESTIMONIAL

My Wealth Solutions are the first financial advisers I have found that consider your entire financial position. They are not focused on one product or investment type, rather they are focused on finding the right financial solution for your current situation. I am looking forward to working with Ben and his team over the coming years.

James C.
CLIENT TESTIMONIAL

After 20 years of working, we had no real direction when it came to planning for our financial future. After deciding to visit My Wealth Solutions, we now have achievable financial goals and we couldn’t be more confident that the strategies employed will ensure a comfortable retirement. The MWS team took the time to understand our current financial situation, needs and wants…Guy and Nikki…explained all aspects of their advice in a clear language that was easy to understand.

Mick & Dani I.
CLIENT TESTIMONIAL

The my wealth solutions team have been extremely helpful over the last couple of months whilst setting up our investments. Nikki and the team always get back to us promptly when we have questions. Thanks for the fantastic support!

Tara P.
award winning and highly recommended

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