Investment Principles
With investment generally the more risk you are prepared to accept will lead to higher returns over the long-term but also normally means more volatility (up and down movements) which can be very scary to the inexperienced investor and may mean you making bad decisions should your investments fall unexpectedly.
Investing in cash and bonds to deliver a predictable return may seem prudent but over the long-term inflation could wipe out any gains you make whereas investing in property and shares is likely to give you a return over the long-term significantly above inflation, making your money work harder for you but you have to live with the increased volatility.
Combining different types of investment (property, shares, bonds and cash) via an asset allocation model can help to even out these swings in value, especially if they are "non-correlated" (i.e. their prices move independently). This is why it usually makes sense for investors to have some exposure to bonds and cash even though their long-term potential is less than that of property and shares.
The asset allocation of a portfolio has a direct impact on the level of risk as does the timeframe for investment. If you need the money in three years’ time, you should take much less risk than if you intend to invest for twenty years.
We will help determine the risk you are prepared to take, talk about the options for maximising your return within your risk tolerance and then select a suitable model portfolio with you. Our investment models reflect your financial goals, attitude to risk and your investment timeframe. We invest in a range of asset classes, spreading your investments and thereby reducing your risk.
Also See -
Passive Vs Active Management Lifestyle and Target Date Funds
Investment Advice - Charles Wilkinson Financial Planning
Looking for Investment advice in Harrogate, Northallerton, Scarborough, Selby York. or any part of Yorkshire Stephen and Veronica will help you plan.
Charles Wilkinson Financial Planning provides investment solutions. Whether you live in Harrogate, Northallerton, Scarborough, Selby or York. or any part of Yorkshire Stephen and Veronica will help you plan and invest You may be looking to invest a lump sum or just want advice on the best ISA for your hard earned cash, we can help you.
We cover the cost of your initial consultation to find out exactly what financial aspirations you have. Once we find out exactly what bespoke investment advice you require we can create a plan and cashflow. We know that no two clients are the same which is why our investment service provides bespoke solutions.
If you think we can help you with your investments please contact Stephen or Veronica by completing the consultation box or phone on 01904 631839 or send us an email on cwfpltd@msn.com
We are dedicated to improving your knowledge of investment planning. To help we are providing you with a range of information provided by Vanguard. These guides give simple easily understood information relating to the principles of investing, enjoy!
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