Welcome to our
Winter Newsletter
In this quarter's
edition you will discover:
* What is happening in financial markets...?
* Testimonial from a happy client
* Staff Profile on Claire Hone
What is happening in financial markets…?
This is a question I guess a lot of us who are following the financial markets are asking ourselves.
We do not believe we are staring down the barrel of another 1987. The market has not doubled in 6 months and in desperate need of a purging – to some extent this has already happened. However we do acknowledge a loss of confidence world wide, due to the sub prime crisis and, more recently, much higher fuel prices and hence a corresponding loss of purchasing power (for a simple explanation of the sub prime crisis go to www.iplan.net.au/pdf/Sub_Prime.pdf). In Australia this has been coupled with rising interest rates. This is likely to flow through to less discretionary spending by consumers and may well result in falling company profits. We believe that the markets have already anticipated this and is evidenced in the current volatility being seen. So, where to from here?
There are several schools of thought. The first and perhaps loudest are those that say we are in for a serious downturn and major world wide crisis. These are the doomsayers, and there are some very respectable people in this group. Another, larger group, are saying it is going to be tough and there will be continued volatility, however most of the doom and gloom is already priced into the market and as confidence returns so will the value in the share market, property market and credit markets - now is the time to sit tight, hold your nerve and ride out this period of uncertainty. There is yet another group – those who believe now is the time to buy up big when times are tough – the contrarians, a fearless minority group.
So where does iPlan sit in all this? Our position is crystal clear.
Your Financial Plan is for the long term. We believe in this time of uncertainty, we should hold the line, continue the relentless disciplined approach that was agreed back when your plan was started and push through the negativity, and where appropriate, continuing to purchase quality assets, now at depressed prices. We rely on high quality fund managers to make the right choices both locally and globally on what shares will or will not perform over the long term. We use independent research* to choose who those fund managers should be. We also use independent research to assess what asset classes should be invested in. For example, this research indicates that a High Growth Investor should be invested approximately in 50% Australian Shares, 40% International Shares, 10% Property.**
If we assume the original logic is sound and that the current strategy is appropriate then we must push on and hold our nerve. Where does this leave us? Unless there is sound, logical, well researched reasons to sell down, now is not the time. Please refer to the Volatility Survival Tips article on our website for additional information (www.iplan.net.au/pdf/Volatility_Survival_Tips.pdf).
At your Annual Review we will again review your current personal circumstances and together decide the appropriate course of action moving forward, not based on market volatility, but based on you as an investor, your personal circumstances, recent changes to legislation, and importantly the willingness to accept the level of Risk in any strategy. This may result in slight changes to the existing strategy, or it may mean a significant new initiative appropriate to specific needs.
If you have any concerns, the first thing to do is contact your adviser. They will discuss any issues with you and advise an appropriate course of action.
*Lonsec Research 2008, Van Eyk Research 2008
**Van Eyk Research, 2008
My wife and I are naturally very conservative in our personal financial management for our family and future. Over the last number of years I had been seeking a financial plan that would cement Jenny and my financial security, and set us up to achieve the better financial outcomes for home ownership, investment and better management of our income tax liability.
John and the team at iPlan have developed an all encompassing financial plan for us. It has consolidated Jenny's various superannuation schemes under a single master fund to maximise her potential retirement income, developed a tax effective capital growth program for both of us, and given us a clear and disciplined financial direction and goal.
C O, BALMORAL |
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Staff Profile:
Claire Hone
Employee of the Month -
February 2008
Why did you join iPlan?
I wanted to work for a smallish, privately owned company that had a family environment.
How long have you been working in the Financial Services Industry? 8 years here, previous to that 6 years in banking.
What is your position at iPlan and what do you do?
As Client Service Manager I oversee the client service division and have a strong commitment to ensuring iPlan provides outstanding customer service. I am also the Compliance and Procedures Manager which entails ensuring the iPlan Licensee is compliant within ASIC's regulations and am responsible for the efficient management of iPlan’s processes and procedures.
How do you feel about being iPlan's Employee of the Year?
About time!!!
What did you do before iPlan?
Worked for CBA in Business Banking.
Do you have any children/grandchildren?
No, just 3 beautiful British short hair cats Bram, Henry and Lulu.
What is your favourite book/movie? Why? Zoolander, cracks me up every time.
What is your favourite quote? Why? No
Who is your favourite actor?
Ben Stiller
What is your favourite food?
Wine.....oh food - Italian
What sport do you follow and who is your favourite team?
Go the LIONS!!!!!!!!
What are your hobbies and interests outside work?
Socialising, gardening and footy
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