Without allowing ‘the tax tail to wag the investment dog’ our savings and investment recommendations take into consideration current circumstances and future expectations looking specifically at income, capital gains and (IHT) allowances to help ensure no stone is left unturned in the pursuit efficient returns given a specified level of risk.
Our recommendations take into account the likely term and the chances of the fund needing to be accessed at short notice, investment experience, capacity for loss (what impact do the funds have on maintaining living standards). Discussions also run through positive and negative ‘what if’ scenarios making provisions reflecting the potential outcome.
Every recommendation also considers the number of holdings within the fund portfolio as a smaller number of holdings can lead to higher volatility and price fluctuations which aren’t good if the money is needed soon; past performance, management performance and charges (platform, provider and adviser) fees can have a significant impact on returns.
To help ensure savings and investment recommendations match a client’s risk profile we use specialist software packages and fund analysis planning tools to complete risk profile questionnaires which assesses considerations such as Investor experience, Attitude, willingness and ability to take investment risk and capacity for loss. The report documents the answers completed in the questionnaire which, together with additional guidance and personal preferences enable us to determine an appropriate risk profile and we explain how the risk profile fits with the attitude towards investing.
The report also outlines a target asset allocation to matching risk profile indicating the risk and return expected from the portfolio.