At the start of the advice process is our ‘getting-to-know-you’ stage. We’ll need to ask you about your personal and financial circumstances, but we also need to know more about you and what makes you tick.
What are your financial and personal goals? Are you a risk-taker or do you have a more cautious approach? What level of growth are you anticipating? Are you investing for growth or investing for an income in retirement? We’ll also ask you about your tax position, to ensure your investments are as tax-efficient as possible.
Assessing your attitude to risk is an important indicator of the type of investments that will suit you. We’ll ask you a series of questions and calculate your tolerance on a one-to-ten scale – one being the most risk-averse, and ten being the most tolerant.
From there, we can start to form an opinion on the type of investments that might suit you. If you are risk-averse, we’ll consider cash or bank deposits. If you’re more tolerant to risk, we may suggest an investment portfolio whose higher expected volatility is matched by greater growth potential.
Then, armed with information on your attitude to risk, and having discussed with you in detail what your score means, we’ll start looking into what opportunities are most suitable for you.
What are investments for income?
Investments for income are best suited to people who want an income from the interest paid out on their investments, often when they have retired. Interest payments, dividends or any other profit made can all form part of a retirement income.
What is investment for growth?
Investment for growth suits people who want excellent growth potential from their investments. It is often geared towards more risk-tolerant people, as growth investing is regarded as more ‘offensive’ while investment centred on income generation, tax reduction or capital preservation are generally more ‘defensive’.
THE TAXATION OF INVESTMENTS GUIDE
To DOWNLOAD this FREE guide which sets out the basics of the taxation of investments, please click the button below:
INVESTMENT PLANNING AND ASSET ALLOCATION GUIDE
To DOWNLOAD this FREE guide which sets out the basics of investment planning and asset allocation, please click the button below:
MAKING THE MOST OF ISAs
To DOWNLOAD this FREE guide which sets out the basics of making the most of ISAs, please click the button below:
What Is Covered In These Guides?
- Life assurance-linked investment bonds
- Easing the investment tax burden
- Key points in planning your investments
- Platform choice
- How we can help