15 March 2022

As a Wealth Adviser, one of the most common questions I get asked is in relation to the returns that investors can expect. However, the conversation you and your Wealth Adviser should be having is how we can help you achieve your financial and lifestyle goals.

Initial engagement with your adviser is about building a trusting relationship. Providing financial and lifestyle goals to your adviser so they can learn about your current personal and financial situation, while understanding your ability to tolerate risk and volatility when investing, will help in creating an investment plan that best achieves your goals.

As a Wealth Adviser, examining the current and projected economic, political and social conditions allows us to determine which investment options are best suited for each client. In today’s climate, we are facing several economic and political headwinds causing market volatility. Inflation, a tightening of the money supply, and geopolitical tensions are a few of the factors markets are currently experiencing.

It is important investors are aware of the market and how it may impact investment returns. Once you have information on the economic conditions, the next step is for your Financial Adviser to implement a plan - constructing a portfolio incorporating the agreed risk profile while giving you the greatest chance of meeting your objectives and goals. This is the “Asset Allocation” process – deciding how to distribute an investor’s wealth among different asset classes.

The Asset Allocation process determines the portfolio’s risk and returns over time. Matching your personal risk tolerance to that of the portfolio puts the focus on long-term returns and avoids hasty short-term decisions when markets move unfavourably.

I encourage all my clients to continue to review their goals and objectives and to seek advice if circumstances change, such as an inheritance or unforeseen early retirement. Now is an opportune time to re-visit your investment goals and objectives and make the appropriate changes.

A simple conversation with your adviser can help to ensure your long-term financial success. For more information please contact your adviser or get in touch with our Wealth Management team.