9 10 4 Investing For me, authentic investing implies that it’s true, real, proper and right - it means a sensible, systematic approach to investing and starts with you accepting four What do we mean by ‘authentic investing’? Simple. It enduring beliefs: means smarter, more sensible investing. 1 Capitalism creates wealth. It means investments built on sound financial stewardship, it means never speculating to accumulate, and it means2 Markets work reasonably well. understanding the relationship between risk and return. 3 Risk and return are related. This is the engine room of your Wealth Plan, that is,4 Diversification manages risk. your financial future, so having an authentic investment strategy is absolutely essential for what comes next. Once you’ve accepted the above, enjoying a successful investment experience will require you to depend upon By allowing the markets to do the heavy lifting – owningfive practical imperatives: a well-diversified global portfolio that fits your needs, being patient and remaining disciplined through all market1 Portfolio structure - select the right assets and blend. cycles – you give yourself, with the continued guidance of a trusted Financial Planner, every chance of success. 2 Diversifying broadly – invest across assets, sectors, and regions. Authentic, evidence-based investing will provide you 3 Managing financial costs - remain systematic and with every chance of having a successful investmentminimise taxes. experience and outcome.4 Managing emotional costs - stay disciplined and don’t waver. This approach guarantees you can capture most of what is available by owning systematically managed funds. 5 Portfolio maintenance - rebalance the asset mix regularly. 17 Jonathan M. Gibson CFP™, Chartered Fellow (Financial Planning)Jonathan M. Gibson CFP™, Chartered Fellow (Financial Planning) www.wellsgibson.uk www.wellsgibson.uk
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