Strategic Investment Planning

Be clear about your current finances

The starting point is getting an accurate picture of your current financial situation. Work out what you own, what you owe and your income and expenditure.

Confirm your goals

Goals will become the backbone of your investment plan. Write them down, with a timeframe for each goal.

Understand risk

Understand how much risk you want to take to achieve those goals by reading our article on risk and return. Your plan will be the pathway you take to achieve your goals. The course you take will be shaped by where you are now and where you want to get to.

At PECUNIA Private Wealth Management we believe that it is important for an advisory firm to offer a simple and flexible approach for retirees. Our analysis concludes that a “one size fits all” solution, whether it is an aged based or target date fund or one of the many available annuity products, is unlikely to actually “fit all” all that well. An advisory firm’s strategic investment approach needs to cater for the wide range of individual investor profiles and the important fact that investors’ own requirements will change through time.

One Strategic Investment solution that could be used by us is a three ‘bucket’ approach.

This approach includes:

  1. A short term “bucket”: This would be an amount invested in cash, to fund spending needs for the next say 3 years;
  2. A medium term “bucket”: This would include the some of the investors’ assets, invested to provide a moderate level of growth, with active management and a greater focus on downside protection; and
  3. For investors with larger investment balances, a longer term “bucket” with a portion of funds invested into growth assets, to protect against longevity risk (i.e. the risk that a member will outlive their savings).

The three-bucket approach utilises different investment managers, asset classes, sectors and mandates compared to other approaches which may include a specific focus on tax aware strategies and downside risk protection. Tail risk protection strategies can be used to further protect on the downside. The critical part of all our analysis is that an investor’s final Life of Income is fundamentally determined not just by the structure of the investment products available, but how effectively it is managed. For example, an extra 1% pa in returns would extend the Life of Income for some members by over a decade. The consequential impact on wellbeing and security throughout retirement is enormous.

This approach is aligned with having a strong financial planning capability, to ensure regular review, education and engagement with the client.

The success of any Strategic Investment Planning solution starts with knowing our Clients. “One size does not fit all” when it comes to Investment Planning, so it is remains that Private Wealth Management Advisory firm will need to offer different solutions for different Client circumstances.

There are many, approaches to the development of an individual investment portfolio, including Markowitz’s Model or Morden Portfolio Approach, Eugene Fama’s Efficient Market Theory, Cashflow / Time Horizon Approach, Capital Asset Pricing Models, Arbitrage Pricing Theory Model, Sharpe Index Model & Tax Efficient Strategies etc, etc, the list of methodologies goes on. At the key of them all however is the Client Individual understanding or risk, appetite to risk and attitude to investing.

Active management is still important, if not more important in today’s environment, and there is the need to be thoughtful about de-risking.  It is also important to ensure that there is a smooth transition for a Client as they move through each of their individual life stages and events. The key focus is in engaging with our Clients early on in their journey, and to give them confidence that their hard earned “nest egg” is in safe hands.

Michael Carlton

CEO & Senior Adviser

Michael Carlton, Director & Senior Adviser
PECUNIA Private Wealth Management is a privately owned advisory firm, with Michael Carlton (Director & Senior Adviser) having over 30 years’ experience in the Financial Services profession, working in both the Corporate and Private Sectors, most recently having worked with one of Australasia's leading providers of integrated financial services and accounting services as a Senior Financial Adviser (Private Wealth Manager).

Our Clients include;
• Doctors, Dentists, Medical Specialists and Allied Health Professionals;
• Business Owners, Business Leaders, Retirees and Accumulators;
• Individual and Corporate Trustees of Self - Managed Super Funds; and
• High Net Worth Individuals

Corporate Experience, Personal Approach:
Specialising in, Long Term Investment and Wealth Creation Strategic Planning, Investment Portfolio Advice and Management, Retirement Planning, Self - Managed Super Funds, Personal Risk Protection, Succession and Estate Planning, PECUNIA Private Wealth Management’s Director & Senior Adviser, Michael Carlton has earned a reputation for unwavering commitment to these clients based on the core principles of genuine client advocacy, quality advice, and the provision of personalised not corporatised service over many years, with a low client to adviser ratio and will not compromise on this.

Fee for Service Only
"The price is what you pay, the value is what you get..." Warren Buffett
• We are a Fee for Service Practice, so you know the exact cost before proceeding with any advice;
• We DO NOT accept Commissions, from our recommended products or services

PECUNIA Private Wealth Management provides these services to clients throughout the Eastern States of Australia, from Queensland right through to Tasmania and whilst also having a number of expat clients located overseas. Through the use of technology and with regular visitations all of these clients enjoy continued full access to Michael and the PECUNIA Private Wealth Management team.

Michael has completed the Diploma of Financial Planning, Masters of Applied Finance, is a Member of the Association of Financial Advisers (AFA), is a SMSF Association and is currently undertaking further post graduate studies.

We exist to provide personalised “Inspired Strategic Thinking Today For Your Future Tomorrows”.

Michael Carlton (AR: 239724) Carlton Family Trust ABN 51 283 954 577 t/a PECUNIA Private Wealth Management (CAR:1233485), are Authorised Representatives of Arrow Securities Group Pty Ltd ABN 30 165 731 144 AFSL No: 448218. Mascar Holdings Pty Ltd (Corporate Trustee) Carlton Family Trust registered Tax (Financial) Adviser 25869223.

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