The Sustainable Wealth Model
I am not sure about you, but we think it is always about:
- Keeping our money safe
- Making our money work
- Enjoying it too
Like it or not, money is the currency of life.
Money does not define who we are.
Money is merely a means to an end.
It is just that we need enough of it.
How to get enough money
A proven system is the key.
One that is not complicated requiring highly trained specialists to make it work.
One that is fundamental, does not rely on an unusual set of economic circumstances (e.g. the liquidity bubble over the last 30 years) to make it work and that is easy to understand.
The Sustainable Wealth Model is The System
These three assets “made the cut” so to speak because of their inherent characteristics and more importantly, the complementary nature of the three.
By the way three assets are included to capture opportunity – not for the purpose of diversifying to managing risk.
What to do
Once you know what to do and how to …
THE SUSTAINABLE WEALTH MODEL
The three assets create the investment eco-system
These three specific assets, along with Warren Buffett’s highly acclaimed but little-understood value investing methodology come together to create an investment eco-system.
Of course, we cannot claim to have the investment acumen of Warren Buffett and Charlie Munger, however, their ideas and methodologies are transferrable.
WISEplanning not only invests directly in the same investments as Warren Buffett, inside his Berkshire Hathaway company but outside that vehicle as well.
Importantly, at WISEplanning, we have captured the core of his investment methodology, which is useful because we can apply it across those three asset types. This helps us to effectively manage risk and to drive investment returns long term.
It is important to distinguish The Sustainable Wealth Model from specific investment methodology.
In short, how we might invest in businesses or property investments requires a specific approach for each investment type.
The Sustainable Wealth Model includes those assets and their respective methods. It is an overarching framework and eco-system that can provide you with the structure to, in the end, make enough money (as distinct from nearly enough or nowhere near enough money).
BRUTAL FACT: a mortgage free home and $700,000 in a Kiwi super scheme or one rental property may not be near enough money … may only result in financial dependence, NOT financial independence.
It is simple and you control it
You can, once you understand the model (it is simple), decide with a bit of guidance, how you prefer to design and structure it, to suit your needs. You have control. You can tailor it to meet your long term investment growth requirements, use it as it best suits you and your family. In other words, what we have here is a simple, flexible yet powerful system that can give you real control over how much money you make long term.
Making money’s one thing, managing risk is another
The Sustainable Wealth Model is all about sustainability long term. In other words, it is about building wealth definitely (rather than trying to get rich quick or out-smart the markets).
At WISEplanning, we think the biggest risk that investors face is ignorance, lack of knowledge and for some, a fragile temperament.
For us, thanks to the underlying methodology and the model itself, the usual risks that most people face, we are able to largely side-step.
That is because we understand how to select quality investments (and more importantly, de-select poor quality from the portfolio), which helps to provide a strong degree of resilience for our investments.
We are focused on the opportunity and not wasting time worrying about losing our money. The system keeps our money safe.
We understand that price and value are not the same things.
Further, investment decisions are not based around rising or falling asset prices (although they can represent an entry or an exit point) but rather, the underlying fundamentals of the investment.
We do not play the markets, try to second guess or out-wit market direction and economic cycles – we don’t need to.
Whilst we will obviously watch economic conditions both in New Zealand and around the world, our money is made from the methodology and the quality of the investments that we select.
The Sustainable Wealth Model provides us with an eco-system to help maximise returns and build real wealth longer term, whilst helping to keep our money secure along the way.
The risks revolve around investors lack of action and getting serious about making enough money.
This can be driven by other risks like lack of experience, lack of understanding about price and value, willingness at times to buy into and listen to prevailing economic and financial “noise”, particularly during times of uncertainty and turbulence.
To be clear, risk has little to do with pricing volatility, but rather with investors not understanding money and investing.
With a sound methodology and quality investments, our clients who are the happiest and the most successful, are those who simply invest in the fundamentals and stay the course.
In other words, they make an effort to understand The Sustainable Wealth Model, how as an eco-system, it helps them to maximise their wealth building efforts and to keep their capital safe. It is not complicated.
Then, once the decision is made to get on what for many is sometimes the hardest bit of all, is out of the way – that is knowing: where to start, what to do and how to do it.
1) OK – I want to discuss this … Contact Us
2) Not ready to get on yet? Let’s keep joining the dots …