Inside Plan B
Guiding Principles
Holistic approach
We understand that wealth is defined in many ways besides money, and that your personal definition of wealth is as individual as you are.
While many financial advisers claim to adopt a holistic approach in advising their clients, in reality the majority lack the tools to identify:
- What a client’s risk profile really is.
- The trade-offs the client is prepared to make to reach specific, desired goals.
- The relative importance of money versus, say, leisure time.
Yet these are precisely the decisions which most of us face in our daily lives, and in planning for the future.
At Plan B we have an established reputation for helping our clients articulate their unique definition of wealth – and for devising coherent plans to achieve and sustain their desired lifestyle.
Unique, leading-edge tools
Unique ‘off-the-shelf’ tools do not exist for advanced diagnostic and predictive modelling, that is why Plan B developed True North as a bespoke, decision making framework to guide wealth management strategy.
In statistical terms, True North uses sophisticated conjoint analysis for psychological risk profiling, choice modelling and for helping clients determine acceptable versus unacceptable lifestyle trade-offs. In addition, True North uses Monte Carlo analysis to analyse alternative investment histories. When combined, these analyses deliver an accurate understanding of potential lifestyle and financial outcomes based on specific scenarios.
The ability to integrate psychological and financial data through True North, to help guide a client’s future strategic direction, is unique to Plan B.
Life-long coaching
A Plan B client is coached through a process to identify and confront their real objectives. Then, working with their adviser, a comprehensive strategy is developed to achieve those objectives with greater control and certainty over time.
The wealth management needs of Plan B clients varies according to life stage and individual circumstance. Priorities may move from wealth acquisition to wealth protection, or from investment growth to estate planning.
As a group, Plan B has helped many clients reach their original objectives. In fact, most of Plan B’s original clients are still with the organisation and have been advised by us for 20 years.
Realistic advice not driven by commission
The majority of financial advisers operate on the basis of commissions paid by the groups to which they direct client funds. Investors are not always clear what proportion of their investment is being taken in commission, nor the varying commission rates paid by different fund managers. This paradigm does not lend itself to transparency, objectivity and, ultimately, trust.
By contrast, Plan B charges on a simple fee-for-service basis. Because our financial advisers are not paid commissions or brokerage fees, there is no reason for them to recommend one investment strategy over another – except for what is in your best interest.
At Plan B we never forget that we are managing your money.
Rigorous methodology
Plan B is committed to the discipline of structured asset class based investing. In an industry where the majority of investors are steered towards actively managed funds, Plan B embraces the tenets of Modern Portfolio theory, explained in the Nobel Prize winning research of Markowitz and Sharp, showing that portfolio structure (asset class allocation), not stock selection and market timing, determines long term investment performance.
A diversified, structured investment strategy has been consistently, scientifically proven not only to deliver persistent returns over time, but to do so at a reduced risk to the investor. As structured asset-class based investing continues to evolve, Plan B remains at the vanguard of innovative and rigorous investment thinking.