All investments have a risk and return payoff and we all have different comfort levels for how much risk we are willing to accept. Determining what your risk profile is means we can better make investment choices and recommendations that will suit.
People have differing risk profiles which are relevant to their current financial situation, their age or life stage, their goals and objectives and their financial experience and knowledge.
For example, some people find it easy toignore movements in the markets and focus on their long-term goals, however others become anxious when their investments decrease in value, even if by a small amount.
We therefore need to understand your willingness to take on risk so we can provide you with advice that is appropriate to your individual circumstances.
What suits someone else will certainly not necessarily suit you.
In the next section we will ask you a series of 8 questions that will determine your ‘risk profile’.
The answers to these questions will indicate your risk profile on which we will base any recommendations we make.
This part of the overall advice process is really important, so if you have any questions at all, please contact us to discuss.