{"id":2217,"date":"2017-03-09T01:02:16","date_gmt":"2017-03-09T01:02:16","guid":{"rendered":"http:\/\/www.prosolution.com.au\/?p=2217"},"modified":"2018-03-08T17:17:17","modified_gmt":"2018-03-08T07:17:17","slug":"numbers-dont-lie","status":"publish","type":"post","link":"https:\/\/wealthcoach.com.au\/stage\/numbers-dont-lie\/","title":{"rendered":"Numbers don\u2019t lie! Advice can be verified"},"content":{"rendered":"

\"The<\/a><\/p>\n

When you visit a financial advisor and receive advice, are they sharing their opinion<\/em> or facts<\/em>? Many people think they are relying on a subjective opinion when they seek financial advice. The fact is that you don\u2019t have to take this leap of faith. I can prove why a certain approach or strategy is the most appropriate and effective using simple math. The beauty of this is that numbers don\u2019t lie. You can trust the math.<\/p>\n

\u2018Why\u2019 is often more important than \u2018what\u2019<\/em><\/strong><\/h3>\n

I have many clients that I have dealt with since I started this business in 2002 that trust me 100%. These clients are only interested in the \u2018what\u2019 i.e. what should they do next. However, if you meet a new financial advisor, I suggest the \u2018why\u2019 is more important to understand. Having the advisor explain why a certain strategy or asset class is the best solution for you often provides an insight into their way of thinking and how robust and rigorous their advice methodology is. What\u2019s more, if the advisor can prove it to you using simple math then it should go a long way to building your confidence in them. Let me put that a different way. If an advisor cannot explain why they have recommended somethings and in most cases, prove it using math, then you probably should be concerned.<\/p>\n

Take a recommendation like you should invest in property. It\u2019s not because I think property is a better asset class, or because I think the property market will continue to appreciate, or because I think you will enjoy a better overall return. It is none of these things. No. I recommend property because I can mathematically prove that it\u2019s the best tool for the job. Much like a golf player knows that teeing off with a putter (not a driver) isn\u2019t the right club for the shot \u2013 that\u2019s not a matter of opinion \u2013 it\u2019s a provable fact.<\/p>\n

The foundation of any investment strategy is rooted in numbers<\/em><\/strong><\/h3>\n

Financial modelling is the foundation of any investment strategy. A financial model is simply a spreadsheet that projects forward your assets, liabilities and cash flow \u2013 often through to retirement and beyond. Advisors use a financial model to achieve two main things:<\/p>\n