Would this Managed Portfolio be suitable for me?
Well perhaps it is suitable now you have seen the past performance and the bumps along the way, but let’s ensure choosing it as a home for your life savings would be a wise decision. We don’t want the perhaps expensive consequences of making a mistake. There is a phrase you learn early as a trainee private pilot, when looking at the weather forecast and deciding whether to fly or not. If in any doubt then don’t do it.
Do I stay or do I go.
Always remember…
You’d rather be down here – wishing you were up there, than up there – wishing you were down here!
No regrets, let’s get this decision right
Our attitude to risk is determined from the sum of our personal experiences, built over our lifetimes. Our risk attitude can fluctuate by the day, depending on the recent ratio of good news to bad news, but it usually deviates little from an individuals long term base level of acceptable risk.
I believe for many individuals, it’s the sudden market falls that can break our resolve. I don’t tend to receive calls from clients that are getting frightened because their personal level of life savings is remaining static or rising strongly. (Although a strongly rising market is usually a worry for me as I understand what usually comes next). The regret felt is usually because an individual has not taken into account “The 3 Takes”. Let me explain.
Take 1 – Will
We maybe know the level of investment risk we feel we are willing to take. We either usually take all kinds of risks or we don’t usually take risks. Our will is strong.
Take 2 – Need
Next we must consider the level of investment risk we need to take. We should look at what we are trying to achieve and how much that would cost. This is often overlooked.
Take 3 – Afford
Finally we need to consider the level of investment risk we can afford to take. This “Take” is often forgotten about. Although we should hope for the best, we must plan for the worst.
How much risk do I need to take?
That depends on how much money you currently have and how much living you have left in you. If you cannot see yourself spending your current life savings in your lifetime, you have the opportunity to take less investment risk. If you would like the future to be jam-packed with great adventures, then your savings probably need to work harder.
How much risk can I afford to take?
This is a very important consideration. What’s your Plan B if the level of your investments has fallen dramatically? Do bills still need to be paid? Or are all your essentials covered by other means and future withdrawals from this capital are just for the nice things in life? Nice things that can wait until markets recover?
As you can see the personal suitability of a managed portfolio rests upon many factors
- The term of this investment
- Your underlying attitude to investment risk
- Your resolve and capacity to take temporary drops in value in your stride.
- Your capacity to take temporary drops or interruptions in income.
- Your level of investment knowledge
- Your previous investment experience
If you have taken all of the above factors into account with your choice of managed portfolio, then you are good to go. Feel free to now hit the choose button below.
If you would like more help we have a series of questions for you. Only you have the answers and they should help you make this important decision.
Can I change my mind?
Of course. There is no time for regret, because unlike taking off into the wild blue yonder it’s easy to put right if you later change your mind. You can switch between our managed portfolios at any time. Often individuals have savings in several different managed portfolios at the same time.
What does the Financial Conduct Authority Say?
Past performance is no guide to the future. The value of investments can rise as well as fall
What comes next?
Choose your Managed Portfolios and leave the management of your life savings to us.
Let’s Be Honest
We do not choose to invest in a portfolio like this because we need to. We invest in a portfolio like this because we want to. We must ensure we can afford to take the potential losses graciously before we commit to investing in this portfolio. It is purely for the long term.