---
title: Our investment philosophy
description: "How we invest for retirement: low costs, broad diversification, income kept apart from growth, and the discipline to stay the course."
---

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# Our investment philosophy

## How we invest for retirement: low costs, broad diversification, income kept apart from growth, and the discipline to stay the course.

Investing in retirement is a different job from saving for it: money is coming out, not going in. Our approach is calm, deliberate and built for that job, and it's the same for every portfolio we manage.

### Two buckets, two jobs

- **Defensive:** cash and bonds set aside to pay your income for the next few years, like a water tank that keeps flowing in a drought.
- **Growth:** shares in Australia and overseas, for the long term. It has time to grow, because you won't need it for years.

Your income comes from the defensive bucket first, so growth assets don't need to be sold in a downturn.

### How portfolios are built

At the core, low-cost index funds give broad market exposure. Around them, specialist managers are chosen for particular roles, such as income. Every fund is approved through an investment committee process and watched against its job. If we replace one, we tell you why.

### Five principles

1. **Keep costs low.** Every dollar in fees is a dollar not working for you.
2. **Diversify broadly,** so no single bet decides your outcome.
3. **Match the strategy to your stage of life,** not to the market.
4. **Rebalance with discipline:** when your portfolio drifts, not when headlines scare.
5. **Stay the course.** The biggest risk in retirement isn't a market crash. It's panic-selling after one.

### What we don't do

We don't chase last year's winners, try to time the market, use leverage, complex derivatives or cryptocurrency, or make changes just to look busy. And we take no commissions from fund managers.

### Your money stays yours

Your investments are held in your name by an independent custodian, and you can see them online at any time. Your Statement of Advice confirms the details for you.

This is general information. For anything about your own money, talk to your adviser.

Questions? Text us on 0489 274 766 or email admin@primeyears.com.au.

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