FAQ
There is no such thing as a dumb question. We welcome your questions up front rather than overlook something and need information down the track. As you may have noticed, we enjoy a discussion about your legacy and advice. You are most welcome to dial us in for a quick chat or even a long one – whatever suits you best.
Some questions you should probably ask a potential adviser are:
How do we know the best action for each client when everyone is unique?
Which products do we have access to?
Which investment platform is right for me?
Can I get regular income from my investments?
What does onboarding look like?
How do I change my adviser?
When do we start on the pathway?
How do we make money?
When are you free for a coffee?
What is involved in investment management?
What is mean and what is median wealth?
What is meant by management of your assets and income?
What is the approach to developing our legacy?
How important is my current position?
What is the risk?
What is a conflict?
What about privacy, security and confidentiality?
What is personalisation?
Suggestions on how to prepare for an initial conversation with Yeates & Co?
It may be a Q&A where you ask about us – although you won’t find us very interesting. We are interested in you.
We are here to answer any questions and provide information.
Give thought to:
– What do you need from us?
– If you have that need met, what would life look like and do you think it would make you happy?
– In terms of documentation, initially nothing. What you carry in your head is a great place to start.
Our advice is customised to your situation as much as you wish to share helps that process. Understanding your story is where we start.
From our conversation:
– We identify the challenge
– What could be done
– What goals mean something and
– An initial plan of action, which is where the documentation may come in
This process is not only efficient but keeps you and us focused on the main game – your needs.
When is the right time to start a conversation? Yesterday.
We start where we are and with what we know and take it from there.
We only ever know the right time right place in hindsight.
The ideal time is when you feel ready.
Two tips on what to do:
– Get advice when it’s an idea not after the action is taken. i.e selling a business or a house or ceasing work. Seek advice before the decision is made and action taken. The reward can be surprising.
– Use the advisers’ services and skills to the fullest. Don’t leave any questions behind no matter how minor or trivial. It is why advisers are in this profession.
If you feel unsure of the process or uncomfortable in asking a question, consider finding a different adviser. The relationship might not be right.
Two tips on what to avoid in any advice process:
– If you put off starting a conversation until you think you are ready chances are you may never be ready. It’s an easy way to avoid doing anything even making a plan. A good advice relationship should be a dynamic process and help your thinking and plans evolve
– Try to avoid predicting the advisers process or needs. When we think we are helpful we may create a distraction. A good adviser should be clear about direction and timing and run the agenda for you and help you stay focused.
What do we think is the best measure of our success?
The sleep at night test, yours not ours.
Is this an expensive process?
We only charge a Funds under Management fee.
Our process and time is an investment in the relationship.
We know from experience, the most rewarding relationships and the most successful are, when we understand you and the outcomes you want.
What is involved in investment management?
There are many actions we perform daily. Some are automated, such as share price feeds, report generation, tax reports, asset allocation and some require our personal attention, cash management inflows and outflows, conversations with you and they can be through all media including speaking to each other.
Most clients utilise a Managed Discretionary Account (MDA), which simplifies day-to-day investment management. An MDA optimises a personalised approach to your interests and releases you from transaction management and decisions. As we offer a bespoke service, the level of engagement and communication is discussed and agreed at commencement.
What we do includes the following actions:
– Design a strategy
– Manage cash flow
– Record asset changes
– Identify specific action
– Collect dividends
– Make payments
– Collect and reconcile income and outflows
– Provide updates and suggestions on the markets
– Check on assets to ensure security and ownership
– Report on performance
– Progress to goals and objectives
What is mean and what is median wealth?
Mean or average data tell us little about how wealth is distributed. Median wealth is simply the level at which half the population is better off and the other half is worse off. It is possible that no one country actually possesses either the average or median level of wealth. Thus, none of these figures are, on their own, capable of telling us the whole story of what’s happening with wealth. It is only by looking at all of these indicators together and by comparing them with each other that we get closer to obtaining a meaningful picture of how wealth is evolving around the world.
We are interested in median wealth as it helps understand the scale of intergenerational wealth transfer and the dynamic operating in Australia relative to other countries. If the focus turned to this segment and how wealth is invested or strategies for investment the focus could be on mean or average wealth, however it would then be relevant in Australian dollars rather than US dollars.
Both measures have meaning it depends on the question. Our questions are about the uniqueness to Australia and factors impacting this country and its people.
Median wealth is relevant as it highlights several important characteristics such as, but not limited to:
– The egalitarian nature of Australia and the evenness that wealth is distributed.
– The role of tax favoured investments in wealth accumulation i.e. Superannuation, the home and the role of negative gearing.
– Social support mechanisms such as Medicare, Education and other citizen entitlements.
What is meant by management of your assets and income?
Management of income means we collect funds on your behalf, which we hold in an interest-bearing account. On an agreed date of the month, we allocate funds to your living expenses and/or we invest within the guidelines of your portfolio.
Management also refers to the day-to-day management of your portfolio such as cash flow management, investing and payments.
What is the approach to developing our legacy?
Let’s talk about what’s working, what’s not and what worries you. Then, with a clear picture, we discover the different pathways, options and opportunities and provide suggestions for resolving concerns and achieving outcomes. Like any journey, there are many paths to a destination. For some clients, what you see and experience along the way is what is important; others have a singular focus. There are many perspectives, all of which are valid, and each reflects personality and character.
How important is my current position?
In the first instance, we have a conversation and work out what you are looking for from Yeates & Co.
As part of our initial conversation, we find it helpful to understand your current asset position and how or why you got there. This is often called a Fact Find.
As we have mentioned elsewhere, where you wish to be in the future and your legacy is often more important than where you are now. It’s all important!
What we want to hear are your thoughts about the desired amount of income, your goals and, of course, how you view your legacy.
What is risk?
When old-style advisory firms talk about managing risk, they often mean minimising risk to their business. Many see clients as a source of risk and are less concerned about the risks to clients.
When we talk risk, we are talking about the risks you are taking, not the risk you represent.
We do things differently. Consistent with our ethos, we do not see clients as a risk or liability.
The type of risk we are concerned with primarily is investment or market risk and each client’s view of risk is different; therefore, your perception of exposure is fundamental to our understanding.
Investment risk sits outside of you and what you can control. We don’t fear risk nor can we avoid it; we see opportunity and risk going hand in hand. This approach creates a dynamic that becomes part of almost every conversation about your strategy and investments. We aim to get the balance right for you, consistently, at every stage of life.
A good KPI on risk is how you sleep at night. ®
What is a conflict?
There is much we are required by law to disclose. Moreover, to us, ethics and morality exceed the law. While we do our utmost to avoid any conflicts, they can arise and should be managed.
We deploy the four Ds: disclose, discuss, detour and decide.
Ultimately you decide how any potential conflicts are assessed.
Your business is your business alone; at Yeates & Co we do not disclose the name of clients nor publish case studies or testimonials. However, we may refer to similar scenarios and examples to demonstrate possible solutions.
Managing your assets is our privilege and responsibility. You can be assured that anything we discuss is strictly between us. Your portfolio is confidential, with all information securely stored and accessed.
Protecting assets, including knowledge, is what you should expect from us as from any other reputable organisation.
What is personalisation?
At Yeates & Co, bespoke portfolios that respect your unique circumstances are synonymous with good advice. This bespoke approach differentiates us from many other firms where advice is standardised or boilerplate. Our advice is personalised. You are a person not a number at Yeates & Co.
We are cautious about client-as-a-number templates, Artificial Intelligence (AI) and how it applies in the advice space. Many old-style advice firms see this as a way to increase profits and reduce client service.
However, we see AI as useful a means to elevate the client experience, not our bottom line.
How do we know the best action for each client – when everyone is unique?
This is the skill we bring. As in any professional services role, skill is what separates those who do a job and advisers who are good in their role. Humility or hubris? That is for you to decide.
Our expertise is the realisation of 20 years of testing, refining and executing, to the point where we know with clarity and certitude the right approach for each client.
Our biggest challenge is always understanding what legitimately worries you. From that we can determine what’s working and what’s not. We’ll take a look at income, assets and cash, look at where the gaps are in terms of the growth, investment and legacy, and strive to ease your concerns.
A lifetime’s career with people, their families and stories has educated us and still does. Navigating markets from the days of the dotcom boom via the Global Financial Crisis, and the digital revolution to AI and Trump, we have learned so much. No scenario is ever exactly the same; however, we have learned a great deal and we see a great deal that is similar or familiar.
Which products do you have access to?
Through our licensee Pacific Private Asset Management Pty Ltd, (AFSL 550704) we maintain a highly skilled investment team that is accountable to the Investment Committee. Most members are independent of the advice process. Their role is to provide a researched asset allocation and a high conviction list of investment recommendations.
Our Australian Financial Services licence provides access to a universe of investment products covering Equities, Fixed income, Cash and Equivalents, Managed funds, Private markets (Private equity, Private debt/credit), Margin lending, Structured products, Property (funds and direct), Superannuation and FX investments.
Which Investment platform?
In selecting platforms, we prefer those supported by strong, financially secure entities such as Netwealth, Dash, Praemium, Hub and Macquarie but we are not limited to these platforms.
For more than 20 years, we have used these well-known and established platforms without encountering any significant interruptions.
Can I get a regular income from my investments?
Yes. Once we know the amount of income you would like to receive, factoring in living and lifestyle objectives, we set up a stream of payments. For example, a superannuation account in pension phase for a 66-year-old could be one-twelfth of the annualised required income (five per cent of the account balance) paid monthly to your nominated account. This payment can be arranged for any date in the month.
What does onboarding look like?
Onboarding can be a bit of a palaver: from you, we need signatures and authorities and we action the process of advice, accounts and the investments. Once a Managed Discretionary Account authority is in place we are able to offer a higher level of service. Our client service model is about making this as easy for you as we can.
Client preferences a vary as to the level or style of engagement. Understanding this is crucial to our bespoke management approach and a key part of onboarding and ongoing client management process.
How do I change my adviser?
When you move to Yeates & Co we can take care of the process on your behalf and discuss with you what level of engagement, if any, you wish to have in the transition.
We take care of all the documentation and collections of information and data.
Moving to a new adviser is an important decision. The process should be smooth and stress-free so we cover off every element of the process. To serve you best we adopt a collegiate approach within our network.
Similarly, on the occasions when clients leave or close accounts, our approach equally prioritises a seamless transition and goodwill. We liaise closely with your accountant/s to ensure there are no unexpected tax outcomes.
When do we start on the pathway?
Timing is rarely perfect so let’s start when you are as ready as you can be.
From where we start a timeline is created detailing what we are going to do going forward and when. This comes with actions for us and for you. It is not unusual to wait until something happens in the future or we should have met yesterday. It doesn’t matter – we start when we meet.
How do we make money?
Our philosophy is:
– When you prosper, we benefit. If you don’t gain, we also lose
– Costs have to be clear and transparent.
– Simplicity of costs and your understanding value is essential
– Fees should be inclusive of all costs. Add-ons are a Not-on.
– If we do deals that benefit Yeates & Co the benefit is passed on to you.
In creating Yeates & Co we recognised a unique opportunity to create a business that addressed most of client annoyances and bugbears. Number one is clarity and the understanding of fees.
Our longevity is tied to the profitability and opportunity we bring to clients and our people.
We hope we have them as simple and straightforward as we can.
A single fee is agreed across a portfolio.
The fee includes all:
– Management
– Ongoing investment advice
– Recommendations, reviews
– Platform fees
– Implementation
– Reporting and
– Transaction costs except those levied by a market operator such as the Australian Securities Exchange (ASX) or on international direct investments
Where we can, we will group multiple accounts in fee calculations.
Fees may be tax-deductible; you should check with your accountant before making any decision on this matter.
How about a coffee?
We look forward to having a conversation with you.
Please contact us by email or phone 0438075310 (+61 438075310).
A conversation worth having®