Set Sail for Success with Ord Minnett Noosa
Investing isn’t just for the “super clever”; it’s about finding the right fit for your family’s future. Nicole May discovers ways to protect your nest egg when the global markets get a little messy.
There is a common misconception that often floats around – the idea that you need to be a sophisticated investor to access the most lucrative financial opportunities.
In the world of high-end finance, ‘sophisticated’ is a technical term that usually just refers to the size of your assets or your annual income; it doesn’t mean you need a PhD in economics to walk through the door for advice.
Senior Private Wealth Adviser Chris Harris from Ord Minnett Noosa would like to remove the word ‘sophisticated’ from the conversation.
“It can be misconstrued. People think, ‘Am I clever enough for this?’,” he says. “But it shouldn’t be about that; it’s about making sure the right financial pathways are available.”
Whether you are a retail client just starting to build your wealth or a wholesale client with a more established portfolio, there is a strategy designed specifically for your stage of life. At Ord Minnett, the philosophy is simple: they provide the infrastructure. They don’t just sell you a ‘product’ off the shelf; they create a solution.
Private Wealth Adviser Tom Hartvigsen says that the term ‘products’ can feel a bit clinical at times.
“It might sound like something you’d find in a supermarket,” he says. “But a solution is about building the framework that allows a client to invest in a way that actually suits their life.”
One of the most critical elements for any portfolio – especially those looking toward or currently in retirement – is the defensive side of their investments. Think of this as the stabiliser for your financial ship. While everyone loves to talk about the growth side – the Australian and international shares that can provide exciting returns – the defensive side is what keeps you afloat when the wind picks up.
“In today’s global climate, where things can get a bit ‘messy’ due to international tensions and market volatility, having a solid defensive tilt is vital,” Chris says. “A typical balanced investor might keep about 35% of their money in this defensive zone, which includes things like cash, term deposits, and bonds.
“If you can get a decent yield off that defensive side, it goes a long way to assisting you in retirement.”
It’s about creating peace of mind that allows you to enjoy the Noosa lifestyle without constantly checking the news. For those who don’t yet meet the wholesale criteria, there are still clever ways to access high-quality investments. Chris points to Exchange Traded Funds (ETFs) as a prime example. These are funds that trade on the stock exchange and allow retail investors to get exposure to things like subordinated notes – a type of investment that usually pays a higher rate than a standard bank account.
“It’s a way of looking under the hood, so to speak, of the professional investment world without needing millions of dollars to start,” Chris says. “Essentially, a bond is like a loan you provide to a company or government and in return, they pay you interest. For a wholesale investor, this can be very direct.”
Whether you are just starting or you’re already working with a bank or an advisor but feel your returns have been a bit soft lately, Chris suggests it might be time for a second opinion. Ord Minnett offers a unique service through its dedicated term deposit desk. They can shop around across approximately 15 different approved institutions to find the best rates for you.
This means if you have a significant amount to invest, they can spread it across different institutions and time frames – say, some for three months and some for nine – ensuring your money is working hard while remaining protected.
This makes them a very stable anchor for a portfolio, and having a strong return on this side of your investments goes a long way in assisting with retirement. Tom says that Ords have built a fixed-interest desk, now managing over $2 billion, that allows clients the opportunity to invest alongside industry funds and institutional investors.
“At a time when Government bond yields are rising globally, the opportunities in this space are excellent,” he adds.
The process begins not with a sales pitch, but with a conversation. One ofthe primary ways the team assists is by helping you understand your own financial DNA rather than a one-size-fits-all approach. A simple questionnaire and consultation helps them to ascertain your risk profile and preferences. Once your profile is determined, the team can then help you find the right asset allocation – the perfect blend of Australian shares, international property, and those all-important defensive assets.
“Asset allocation shouldn’t be ignored, and if managed correctly, it results in the defensive part of your portfolio providing downside protection during times of volatility,” Chris says. “Once you determine the allocation of funds to the defensive portion of your portfolio, investment selection is paramount. If you don’t have the time or expertise to look under the hood, don’t guess; seek advice.”
Once the strategy is set, Ord Minnett provides the technical backbone to make it happen. Ultimately, the goal is to make finance feel less like a chore and more like setting sail into the future.
Disclaimer: The advice in this story is of a generic nature. You should seek your own personalised advice before making any financial decisions.
TOPLINE TAKEOUTS
Infrastructure for success: They build the framework that allows you to access professional-grade investment solutions.
Retail options: Easy-to-access funds like Exchange Traded Funds (ETFs) that let you dip your toe into big ideas without needing a massive upfront investment.
The defensive tilt: A mix of cash and fixed interest that acts as a safety net for your wealth.
The second opinion: Not sure if your current rates are ‘soft’? A quick review can help determine if your asset allocation is actually working for you.
Call Ord Minnett Noosa on 5231 9966.
