When helping you to make important investment decisions, your Brunsdon Financial Adviser will first want to find out your attitude to risk. This doesn’t mean seeing if you fancy jumping out of an aeroplane at 12,000 feet or bungy jumping from a New Zealand river bridge. It’s to find out your personal attitude to risk (AtR) in relation to your finances in order to enable your Financial Adviser to make recommendations in line with your risk profile. Based on this and other information you provide, a bespoke investment portfolio will be suggested for you.
There is no right or wrong attitude to risk, however research has shown that perception of risk is greatly influenced by our past experiences. For example, parents of baby boomers who grew up during the 1930s naturally took a much more cautious attitude to money than their children.
The biggest risk of all is not being able to fund an adequate and satisfying lifestyle once you’ve stopped work. The key to a comfortable retirement is controlling rather than avoiding risks and that is why professional financial advice can be extremely beneficial.
At your initial meeting with your Financial Adviser and at least annually thereafter you will be asked to complete our AtR questionnaire. The questions are very general and are aimed at developing an initial risk profile. This will form the basis for discussions with your Adviser, which will also cover your objectives, previous investment experience and existing portfolio (if applicable).
The Adviser will also take into account your age, experience, future goals, liquidity requirements and the importance of the investment in terms of your overall financial circumstances. Only then will an appropriate investment strategy be recommended for you.
To find out more about your AtR and to discuss the most effective portfolio to meet your profile, please visit our web page or contact us to arrange an appointment with a Brunsdon Financial Adviser.
The value of investments can fall as well as rise. You may not get back what you invest.
Source: Blog by Jason Butler, We need to talk about risk in investing, Financial Times, 18 September 2019
