Why Squiggles are Better than Straight Lines!

- by Tony Harper CFP , Founder and Managing Member of FINPAS

Motivated by the slogan "Embrace Volatility" that a US company, Crowe, has undertaken, Tony takes a look at how FINPAS can help clients and businesses embrace and navigate unpredictable and uncertain times.

CHANGE, DEATH AND TAXES - A CERTAINTY

Just when we thought that the tension throughout and following the Covid-19 pandemic was starting to ease up, 2022 has once again forced us back on our heels with the devastation and worldwide effects of the Russia-Ukraine war, drastically increasing inflation rates, stock market volatility, rising interest rates, supply restrictions and the wait for what seems to be an imminent recession.

VALUE IS ALWAYS PERSONAL

To us, "value" is defined in a new way every day, multiple times a day, through the unique meaning this word has for each of our clients, staff members, consultants and financial community members. Our goal is to help all of these individuals - each adding their own unique value to FINPAS, to manoeuvre in these volatile and uncertain times in a way that brings about their personal idea of value in their lives.

LONG TERM OUTCOMES ARE A TEAM EFFORT

To do this, we utilise our team of professional and empathetic advisers (Gwyn and Tony) who have over 30 years of experience, our lovely client specialist and administrative assistant (Mary), brilliant paraplanner (Leigh), and our sharp tax consultant (Sheri), as well as making use of our various service providers and legal and accounting associates.

MARKET VOLATILITY DOES NOT ALWAYS REQUIRE PORTFOLIO CHANGE.

The above is something we may not like. Doing nothing can be hard. Our emotions push us into a fight or flight mode. To keep our clients happy in an ever-changing market necessitates a change in how we (both adviser and client) think, work, act, and invest. In this way, the Finpas team is on a continual mission to break out of the norm and embrace volatility through our own transformative approach, while still staying true to our purpose and mission of our company - Putting Clients First!

FUTURE-FOCUSED

Making the decision to join the digital world was a critical inflection point as FINPAS approaches its 30th-year in 2024. This has been a great achievement and turning point for our business. We have kept our purpose at the centre of our focus, even within our new digital space, and guiding clients within their personal value-driven path.

Watching goals being met and preparing clients for Life's next transition has always been both professionally and personally rewarding as financial coaches.

In 2023 and beyond, we plan to maintain this mindset of embracing volatility while we pursue the growth of our brand and continue to nourish both our clients' and our own growth in the marketplace.

WHY IS A SQUIGGLE MORE VALUABLE THAN A STRAIGHT LINE?

The answer to this fun riddle is that growth investments that grow in a squiggly way imply that there is a risk involved. Without risk (volatility), there can be no reward. The graph below compares the squiggly US S&P500 and a straight line SA fixed interest fund.

It's hard to preach patience in an impatient world. But experience, planning and prudence still have a great deal to do with handling volatility, building wealth and a business that will be around for generations.

Is all this volatility making you feel queasy?

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