Our job as financial planners is not to guarantee future returns or pick stocks (as we do not have a crystal ball) - but to use our knowledge, skill & experience to maximise the chances of you achieving your aspirations and objectives through the right mix of allocation of assets; cash, fixed interest, property and equities (shares).
Markets and economies move in cycles, and attract a fair amount of human emotion as they evolve. Our specialism is in rebalancing the asset mix regularly throughout this cycle so that you stay invested and maximise your returns based on the acceptable level of risk chosen at the start.
We review your risk tolerance and appetite regularly as a matter of course, or sooner if you suffer an unplanned life changing event (such as inheritance, or bereavement).
Our Process
We clarify the context of our work with you (whether it is a broader ‘holistic’ review, or advice with a specific objective in mind).
We assess your appetite, tolerance and capacity for risk.
We review your existing provisions to see how aligned they are to your objectives, and where required, we recommend a portfolio for you that allocates your assets using the appropriate mix.
We implement advice when you are comfortable to do so, and we review progress regularly.
Risk is one word, but it is not one number. The traditional way to manage money involves figuring out a client's risk tolerance and his or her needed or expected portfolio return, and then creating a diversified portfolio. Although this approach is valid, it has limitations.
how we assess your appetite and tolerance to risk, reward and volatality
We define the scope and context of the work - Is this a holistic view only (i.e. personal attitudes and feelings), or is this with a specific objective, goal, purpose in mind?
We explore and educate - Using questionnaires, we discuss and explain risk and asset classes, and their mix to achieve the appropriate allocation.
We check and test understanding - We quantify possible loss in a year, we review your capacity for loss and the ability to replenish any loss, how you feel about volatility, and review how the term of the plan may impact the realisation of benefits.
Our role is to help
- Make sure you’re not at risk of losing out on a better return than you deserve for your existing provisions
- Reassure you that you are not putting any part of your existing provisions at unnecessary risk of being devalued
- Place your assets in the right name, ownership and tax wrapper so legally and ethically you do not pay too much tax when you want to spend your money
