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WEALTH MANAGMENT
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Wealth Management

OUR GOALS-BASED APPROACH TO WEALTH MANAGEMENT

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Goals-Based Wealth Management (GBWM) integrates wealth planning and investment management into a cohesive, unified approach. Traditional financial planning invests your portfolio with a single risk profile and performance is measured relative to the market or benchmark performance. 

 

In contrast, GBWM looks at what you really want to achieve with your hard-earned wealth for yourself and your family, during and after your lifetime. This is done by setting up individual goals based on your current lifestyle, and your future needs and wants. It is therefore a more complex and comprehensive process.

Once your goals are defined, your wealth manager will assist you to monetise and prioritise these goals. Your existing assets or resources are then identified and allocated to each goal, as necessary. 

 

Each of your goals will have a unique timeline, contribution or withdrawal stream and risk profile, and as such, each goal will have a different investment strategy. Once the investment strategy has been implemented, each goal is tracked and monitored to determine if the rate of return and contributions, or withdrawals, are on track to meet your objectives. 

 

The PCH Goals Based Wealth Management process ensures you reach your desired goals because each plan is tailor-made to suit your lifestyle and financial objectives. Constant monitoring of the progress towards each of your goals will provide reassurance during potential bad market cycles or unforeseen personal circumstances.​

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UNDERSTANDING OUR GOALS BASED APPROACH TO WEALTH MANAGEMENT PROCESS

Define Goals

This is the starting point in the process which will help the client translate goals and objectives expressed in non-financial language into financial language. Our PCH wealth manager will help to define client goals, rank their priority and determine that financial requirement and timelines of each of them.

 

Identify Resources

This involves the review of the client balance sheet to help decide which assets are applicable for the goals-based process and whether any specific assets are to be “ring fenced” for specific goals.

 

Determine Strategy

The defined goals and resources identified above are collated and calculations are done to determine the present value of goals and allocation of assets per goals. Each goal’s assets are then divided into income, preservation and growth investment strategies, depending on the particular goals timeline, whether it is a “need” or a “want”, and whether it is a capital or income requirement.

 

Implement Plan

Once the strategy has been discussed and agreed to with the client, the necessary paperwork is completed, and the investment strategy is implemented. Each investment is allocated to its relevant goal in order to track the progress of the goal.

 

Review Progress

On a regular basis, client investments will be reviewed and the progress towards your goals will be reported on. Any changes to goals or lifestyle requirements will be discussed and any changes to the investment strategy per goal that may be necessary will be implemented as per the above steps.

QUESTIONS TO HELP YOU CLARIFY YOUR WEALTH GOALS:

 

  • What is the purpose of your wealth - to maintain your lifestyle, leave a legacy or buy a super yacht?

  • What are your dreams for the future, for your family, your business, and to help others?

  • Does your wealth need you to personally manage it - how involved do you need or want to be?

  • Consider the next generation - are they equipped to inherit the wealth you have created?

  • What are the dynamics of your family - clarify what values are important to you?

  • What are the risks facing your family and your family’s long-term wealth?

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