How Many Tools Does Your Financial Adviser Have?

By Jason Fittler

"...a one size fits all approach does not work when you are dealing with the Stock Markets."

Your car needs a tune up. You have two shops to choose from; the first one only uses one tool - a hammer - but they assure you they’ll do a better job better than anyone else.  The second shop is filled with lots of different tools which perform different functions depending on the problem with you car. The second shop is a bit more confusing as they provide you with more options on how they can fix your car.

Which shop would you choose?

Now, replace the word car with investment?

There is a saying “KISS – Keep it Simple Stupid” I never like this saying, some things are confusing, investing is one of these things. There are lots of choices on how to invest your hard earned money. There are lots of pit falls, risks and a lot of different ways to achieve your investment goals. If you are serious about making money and getting ahead you need someone to help.

You also need someone who has the right tools to do the job you need, a one size fits all approach does not work when you are dealing with the Stock Markets. Markets change, they move, they have their own mood swings, and to successfully navigate the markets you need to be able to move and adapt with them. To do this you need access to all of the different investments available.

You will never have to use all of them at once but over time you will find the need to call on them. Below is a list of the types of tools available to the investors, next time you a looking for a Financial Planner ask them which one they provide;

1.    Ordinary shares
2.    International Shares
3.    Listed Property Trusts
4.    Unlisted Property Trusts
5.    Listed Investment Companies
6.    Preference Shares
7.    Installment Warrants
8.    Call Options
9.    Put Options
10.    Sub Underwriting
11.    Initial Public Offerings
12.    Sophisticated investor placements
13.    Index Funds
14.    Wrap Accounts
15.    Managed Funds
16.    Protected equity
17.    Margin Loans
18.    Self Funding Installment Warrants
19.    Contracts for Difference
20.    Mini’s
21.    Self Managed Super Fund
22.    Trust accounts
23.    Discretionary Trusts
24.    Discretionary Accounts
25.    Cash management Accounts
26.    Industry Super Funds
27.    Retail Super Funds

Does your financial planner offer these services, are they trained to discuss these instruments with you?

Do you know how to make money in a Bull or Bear market? We can tell you how.

You deserve a choice, so don't be limited by a one size fits all investment strategy.

Call us at ABN AMRO Morgans Townsville, 07 4771 4577 we are always ready to listen, explain and help.

Until next week.

PS: January what a month.

The above chart shows how January 2009 played out, it opened strong moving up to 3800 before falling back to the market lows of 3340, and at this level we saw some strong support which indicates that there is money out there waiting to enter the market. In the last week we saw a good rally putting on 200 points or 6%.

It is our view that the market should move to between 4500 and 5000 over the coming 6-8 months. It will be a bumpy ride but there is support in the market at present.