Risk

We concluded with the sentence: "So question what you feel about this risk and try to achieve a balance you are comfortable with".

Given the sharp fluctuations in the Stockmarket we need to revisit the question of Risk.

The main issue to judge when considering your investment strategy is the risk that you are comfortable with. 'Stockmarket', Property and even Fixed Interest investments can all increase or decrease in value.

You should bear this in mind when you judge your risk profile. This judgement is likely to vary over time and it is important to review your circumstances periodically.

The principal influencing factors are:

      •  Your level of current and future income
      •  Your level of current and future personal expenditure
      •  Your confidence in current and future income and expenditure
          levels
      •  Your ability to increase income
      •  Your ability to reduce expenditure
      •  Your existing capital resources
      •  Your age now and age you want to retire
      •  Your health
      •  Your attitude to suffering capital loss
      •  Your attitude to missing out on capital gains
      •  Your desire for predictability
      •  Your potential inheritance from others
      •  Your desire to leave an inheritance
      •  The circumstances of people that you are responsible for

Risk is personal to each investor. There is no mathematical formula but please think carefully about these issues and contact us if you want advice: 020 8876 1097