Satis Wealth Management is a Chartered financial planning firm based in Pall Mall London. We aim to provide our clients with a simple, enjoyable wealth management experience that provides them with long-lasting peace of mind and confidence in their financial position.Read more
What we do
Satis provide financial planning services to a wide range of clients. All of our clients have financial planning needs which are unique to them, however, we find many of our clients often have similar questions when they start their relationship with Satis. We will help you to find the answers.Read more
Who we work with
The Satis Wealth Management service is here to help you run your financial life, not just for the immediate future but for the long term. As such, the process is designed not just to address your current needs but to establish a long-term plan which will allow you to have full confidence in your financial future.Read more
The behaviour gap
The investment return is the rate at which an investment grows in value over a period of time. It is based on the assumption that you invest a lump sum at the beginning of the period, and then you leave it alone.
However, the investor return (or what the investor receives from their investment) is often far lower. Why? Because of investor behaviour. By not holding onto their investment over the long term, they receive a lower return when they sell. Evidence shows that those who hold on to their investments have been more successful than those who try to ‘time the market’ by buying stocks at a low price and selling at a high price.
The value of a financial planner
There are many studies which show that investors perform better when they partner with a financial planner.
The role of the planner is not just to help you make decisions on asset allocation, diversification and retirement vehicles; but also, to ensure that your investments are working in tandem with your financial plan. With their knowledge of you and your investments, discipline and dedication, good planners will prevent you from making ‘the big mistake’.
Many investors believe that investing is extremely complicated, requiring long hours of dedicated research and elaborate strategies to be successful.
The truth is that successful investing is very simple. It’s not about chasing the next big thing. All it requires is a clear goal, a well-defined, long-term strategy and a strict discipline to stick with it. It’s staying the course which can be the most difficult aspect of investing, and where your financial planner can help the most.
Current reality goal
The most important thing to understand about investing is that you do it in order to achieve a goal; not necessarily a financial one, but one which will need financial security.
The next important thing to understand is that there’s rarely a straight path to achieving that goal. Your investments will go up and down in value and sometimes achieving that goal may feel far away. Your financial planner can help you to keep that goal in sight and help you to achieve it ensuring that despite the ups and downs.
If we all knew which investments will rise and fall in the next year, then investing would be easy!
The fact is that the value of investments will go up and down, sometimes within a year, sometimes within a day. The skill of your financial planner is to ensure that you have a range of investments so that if one performs badly, the fall in value will be made up by those investments which are performing well.
Successful investing is about having a diverse range of investments and being prepared to invest for the long term.
Key to this is ensuring that you have a well-constructed portfolio of investments which covers a variety of asset classes, such as shares (equities), bonds (fixed interest stocks), real estate, cash and commodities. This will spread the risk of all of your investments falls. However, your financial planner will ensure that your portfolio is appropriate for the amount of risk you are willing and able to take.
The only goal that matters
Investing is not a goal in itself. Rather, investing allows you to accumulate wealth which will enable you to reach your personal goals.
So before you begin to pick stocks and shares, you need to ask yourself: “What are my life goals and what financial security do I need to achieve them?” Your financial planner can help you to answer this all-important question. Until you find the answer, you should avoid jumping into investing.