Investment can be risky.
Our risk and reward assessment is one stage in our Financial Advice & Planning service. It is essential we understand exactly how you would like us to manage your life savings, to ensure we don’t expose you to more risk than you want to take, but at the same time we should not assume you do not want to “speculate to accumulate”.
Let’s help you to understand the risks.
I wrote a short blog to help clients to try to understand Investment Risk. If you have not seen it before then it’s probably worth taking 5 minutes out to read it before you go any further.
Let’s not just guess your attitude to risk
Our assessment that follows should indicate the amount of investment risk that you are willing and able to take. The report generated will then become a useful reminder of what took place during the assessment and will provide a comparison for similar future assessments.
Our on-line model portfolio selection tool simply asks a set of questions to calculate your tolerance to investment loss and your expectations of investment return. We commence the assessment by asking what your investment goal is. Each investment we make has differing goals and timeframes. The results from the questionnaire will vary depending upon our goal.
- You may require us to manage your entire retirement savings whilst taking a balanced approach to investment risk.
- You may wish us to just manage a little for a child or grandchild, with the hope that taking a much higher risk over a longer period will result in more substantial return.
Managed Portfolio Results
Our tool will select an appropriate managed portfolio for your proposed investment. It will be based only on the amount of risk you are comfortable with, whilst attempting to achieve the return you are seeking.
How do you know my result will be accurate?
Basically by trial and error. Although our process and service continues to evolve, it has been in place for over two decades now. Each and every client has been asked the same or similar questions on many occasions. The chances are that your answers will match the answers of an existing client who is happy with their selected model portfolio. Therefore investment into the same managed portfolio should be suitable for you.
We constantly assess whether clients are comfortable with their investments held in each of our managed portfolios. Occasionally we do need to change up or down a gear depending upon changing circumstances, but in 95% of cases clients remain comfortable in their chosen managed portfolios for life.