Investment
We all realise the world’s largest companies make money faster than individuals.
We all realise the world’s largest companies make money faster than individuals, perhaps with Elon, Bill and Mark being the few exceptions. You can share in company profits. We can show you how, appropriately to your needs and only if right for you. As an added advantage, we will help you keep the taxman at bay too.
Whatever the driving force of your need to invest, and no matter the size of your investment, once you engage our services we will methodically consider your circumstances and aspirations.
You may already have investments, or not. You may have strong views or be a newcomer to the concepts of investing. You may be seeking income or growth. The term of investment, need for access and your tax situation will also be considered in our analysis.
Whether you are an experienced investor or a complete novice, we will introduce ideas to you and gauge the best fit to your needs and preferences, carefully explaining the benefits of each option as we go.
Before we do any of this, we must consider the key concept of risk and assess your appetite for financial risk.
There are an endless number of options available to you. You can be sure that no matter the type of investment journey you are hoping for, we will investigate it with you fastidiously and with real care. We want you to understand the possibilities and ensure you appreciate the potential benefits and rewards, but also the risks and how to manage them most effectively.
We will build you a portfolio and keep it under review in consultation with you at least annually (a servicing fee will apply). You will feel hugely informed and enabled to make key decisions about your wealth and the options available to you over time.
Asset Classes
We refer to the fundamental types of investment instrument available as ‘asset classes’. A typical portfolio will include the following asset classes:
- Cash
- Fixed Interest Securities – Government and Corporate Bonds
- Real Estate (Real Property)
- UK Equites (Shares)
- Overseas Equities
- Emerging Market Equities
- Alternatives
We will help you understand the metrics of each asset class and how they may affect the portfolio, dovetail effectively and ultimately work for you in an overall portfolio.
“You’ve got to tell money what to do, or it will leave”
Investment Risk
There are many ways to assess risk. Risk means different things to different people.
The word “risk” seems synonymous with “loss” or the chance of losing money. For us at Concierge Wealth Management, as financial planners, we seek to separate the concept of risk from loss. To us, risk is an assessment of predictability – how narrow the range of potential outcomes.
Through life, we sometimes need things to be predictable. At other times, we can accept a greater range of potential outcomes, during a given year or for a particular period. This is effectively our willingness to accept risk.
In saving for retirement, during our younger years, maybe during our twenties and thirties, we can afford risk as we are not relying on a given return from investing year on year. As we get older, the return needs to be more predictable, especially during the years immediately preceding reliance on the fund or once you begin to draw benefits.
In every aspect of life we accept risk daily, a range of possible outcomes, with each and all decisions we make. In financial planning terms, our job is to help you assess your acceptable range of possible outcomes and help plan and manage them effectively.
How We Assess Risk
We use a risk assessment process designed by Oxford Risk. Oxford Risk was founded in 2002 by leading behavioural
scientists at Oxford University.
On completing this assessment in conjunction with our detailed discussions with you, we will build you a risk strategy in close reference to you ultimate goals and within an agreed risk budget for each of your financial objectives.
“Never test the depth of a river with both feet.”
Process of Controlling Risk
Aside from our careful risk screening processes, we also have proprietary systems that will keep a sharp eye on the volatility of your investments (a mathematical measure of risk) and ensure your plans stay as predictable as you expect them to be. Obviously, we cannot control markets, but we can assist your understanding of the underlying assets you hold and keep you informed about the suitability of your arrangements over time.
“If you don’t take risks, you will always make money for somebody who does.”