It’s time to diversify

Do you have an investment portfolio that you created years ago but haven’t spent much time monitoring?

Or have you engaged the services of a financial advisor in the past… just to be disappointed with the outcome?

Maybe you have funds in a term deposit earning very low interest… or you’ve received an inheritance and you don’t know what to do with the money?

As part of our personal wealth management services we can help you make the most of your savings or your current investments.

We talked to Cayle Petritsch, Director and Wealth Specialist about North Advisory’s approach to building an investment portfolio.

When we have clients who have built their own portfolio, it is often diversification that is the main issue. We can help develop their portfolio to really suits their needs… with a combination of Australian and international equities along with cash and bonds. The portfolio is set up to manage the risk based on what the client is willing to accept.

For instance, if our client is already retired, we wouldn’t want their assets to hold too much risk; we need them to have a steady, stable income stream, so we build their portfolio accordingly.

But, if someone is in their 30s, they can carry more risk in their investments. They have many years until retirement and more flexibility to ride the wave of ups and downs in the market as their portfolio grows.

This is where diversification is key. We tailor the portfolio to the individual client. Their risk profile and even specific ethical choices are all taken into consideration.”

Right now we are seeing record low interest rates… term deposits of around 1% look like they are here to stay for a while.

So, even though cash is relatively risk-free, it is essentially going backwards when we consider that inflation is close to 2%. Cayle says,

“Having money in term deposits is safe, but if you want to achieve better returns, you will have to place your money elsewhere.

At North Advisory we have a fixed income solution. It sits between money in the bank and money in the market.

It carries a little more risk than cash but the reward can be there. It is worthwhile considering taking on a fraction of risk to help build your wealth and achieve a better financial outcome.”