Affinity Consulting Group

Financial Planning

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The Key To Building Wealth

The most important element that sets apart the wealthy from those who are not wealthy is a commitment to investing and managing their money. Those who become wealthy tend to invest significant portions of their usable income, and they increase their investments with those managers who produce consistent returns for them over time. Wealth building can be simplified to the following 3 principles:

  1. Spend less than you earn;
  2. Invest the balance;
  3. Re-invest the profits for compound growth.

This is what Albert Einstein called the 8th wonder of the world.

Within these you can add:

  • Asset Allocation: This is generally defined as the allocation of an investor's portfolio over a range of investment strategies and instruments in the correct and appropriate ratios. It is widely agreed that asset allocation accounts for a large part of the variability in return of a typical investor's portfolio. It follows that determining an appropriate asset allocation is the most important decision an investor has to make. Affinity Consulting help diversify your investments over different asset classes and then select investments within each class that are actively managed and well diversified. This generally involves using "funds of funds".
  • Education: Another important characteristic of the truly wealthy is their ongoing quest for financial education. It is sad but true that many people spend more time choosing their car than they do choosing their pension. Affinity Consulting are committed to providing you with all the information you need to make an informed decision and then to keeping you informed about your investment in particular and the world in general through this website and newsletters.

Unsuccessful & Successful Investors

Unsuccessful Investors

Successful Investors

Speculate rather than invest Follow a definite wealth plan
Use investment vehicles that don’t match market realities & they may be in long only funds in a falling market Invest in non-correlated strategies to make money in all conditions
Have improper asset allocation Use dynamic asset allocation
Fail to take and reallocate profits Take profits and lock in gains
Have short-term focus. No long-term wealth plan Manage fear and greed
Fail to take consistent action Manage risk and generate optimum performance
Invest with managers whose interests are not aligned with their own Get competent advice and coaching

Where Are You Now?

In planning the road ahead, it is useful to take stock of where you are right now.

  • Do you have a financial plan?
  • If so, have you achieved all that you set out to do?
  • Have you found investments that you can be confident with?
  • Do your investments produce the realistic returns you desire?
  • Are your investments growing consistently?
  • Are you focused on long-term financial prosperity rather than just short-term lifestyle enhancement?

Affinity Consulting's trained and experienced consultants can help you take stock of your current situation, identify areas for improvement and plan for your future. Contact us today to arrange a consultation.

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