We will all have a different view on investment risk and our individual appetite to take investment risk with the funds that we have, such as cash, pensions, ISAs and the like, will vary.
To understand your needs and your views on the way money is invested, we will ask you some questions about your attitude to and tolerance for investment risk and your capacity for loss. This is a vital part of the financial planning process. It is important to understand what these mean to you and your circumstances and needs.
The time you have to invest may sway your thinking, and you might allocate some funds for immediate use, with others being invested for the longer term to meet future goals, such as retirement income or family gifting.
Your view will be personal to you and is usually shaped by your past experiences, amount of investment, objectives for your funds, inflation risks, whether you need income or growth (or both), your ethical, environmental, social and governance stance, age…the list could go on. These are only examples and there may be a range of other factors that shape the way you feel about your money and how it should work for you looking forward.
Like most things in life, investment views and opinions can change over time, and these should be kept under regular review, and amended where appropriate/needed.
We are here to help. Please take a look at our Investment Risk Scale on the link below to help you consider potential ways to achieve your aspirations.