Attitude To Risk Profiling

Your attitude to risk underlies every financial decision, and many non financial decisions, you take. Every day of your life, you asses risk. This process is so natural, that when asked to define risk, or to describe their attitude towards risk, many people can find it quite hard, but it is often summed up in phrases such as ‘you don’t put your eggs in one basket’.

Firstly, there is no right or wrong answer. Your attitude towards risk is personal to you. It is also important to understand that it can, and should, vary. You may toss a coin for a £1 bet, but would you for a £10,000 bet? With regards investments, a person may well be a balanced investor when it comes to their pension investments but more speculative when investing a small sum into an ISA.

We start by establishing your current circumstances and aspirations. We then list existing assets and holdings so that the particular investment can be considered holistically, not in isolation, before gathering further information on other important matters such as expected retirement age or any income requirements, if appropriate.

We then discuss and confirm attitude to risk by asking questions and explaining principles. For example, how would you respond to investment losses? What kind of returns are you expecting, and are they realistic?

Our findings are then confirmed by the completion of a risk profile questionnaire which, along with our discussions, allow us to move to the next stage of the process, designing an appropriate asset allocation for your investment. This asset allocation is pivotal to all our portfolio planning.

To discuss risk, ask questions or gather any further information, please either use the contact us feature, or call 02380-004444.

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