What are your thoughts on investing in the share market? Are you a confident do-it-yourself investor, or is investing in property, cash and fixed income assets more your comfort zone?
Popular investment classes among doctors in Australia are:
• Property
• Fixed-income assets
• Cash
• Australian Shares
• Internation Shares
• Alternatives
Yet, of all the investment options, shares cause the most angst.
Shares of angst
For many doctors, the initial inspiration for investing in shares often comes from a hot tip—usually in the form of a friend spruiking about all the money he or she is sure to make on the stock market. But in reality, investing in shares this way always leads to disappointment. Most do-it-yourself investors speculating either lose some or all of their money. And when they do, few will elaborate on their losses. Instead, they’ll only brag about their gains.
Doctors make money investing in the share market in two ways:
While these figures are retrospective, and there is no guarantee of future trends—such as market volatility due to a pandemic—it does show how shares outperform cash over the long-term.
Most doctors tell us they don’t have the time to master the expertise astute share market investing needs. Yet, for those keen on do-it-yourself investing, most speculate rather than follow a strategic investment plan. While taking a punt on the next Fortune 500 company or trying to predict the share market wave might give you an adrenaline rush, it rarely builds wealth.
Nine times out of ten, wealth building using shares comes from following a strategic investment plan created by a proven financial advisor. While there are a few do-it-yourself investors who retire rich, they are few and far between. Financial planners not only give expert advice on which stocks to buy, but they show you how to manage your risk.
Contrary to popular belief, portfolio diversification is more than holding shares with one or two major Australian banks, grocery retailers, and mining companies. A strategically diversified portfolio contains national and international stocks across multiple asset classes. That way, your portfolio offers robust returns while being able to withstand global market volatility.
At Carbon Medical, we determine your specific investment strategy with professional input from our Portfolio managers. Importantly the shares and other securities remain in your name. The advantage of which is any tax benefits, like franking credits, are 100 percent yours to claim.
Using the “Relative Value analysis” process, we rigorously seek the best financial assets for our clients. Consequently, we deliberately examine the Top 200 Australian stocks, along with the best performing international stocks. Our focus is on companies with a demonstrably safe track record.
By applying the Relative Value analysis process, our portfolio managers consistently analyse:
What this means for you is that we actively respond to the market. For example, if a sharp rise were to push specific shares in your portfolio above market price (i.e. overvaluation), we’d recommend selling a percentage of the holdings to take advantage of the capital gain before the market adjusts.
Whether we are managing your tailored portfolio or a specific core portfolio, you get peace of mind knowing day-to-day investments decisions are in the safe hands of our expert portfolio managers.
Overall, we implement investment strategies to suit your investment profile while aiming for the highest returns. That way, you can focus on what you do best. But more importantly, with your investments and financial future are in our capable hands, you get to sleep at night.
If you would like to know more about wealth-building or diversifying your investment portfolio, talk to us at Carbon Medical. We’re available in person or via Skype or Zoom.