Risk and reward

Investments can be a fantastic way to make your pension or savings work harder for you and can be a great addition to your saving strategy.

However, when it comes to investments, there’s always a level of risk involved. Whether you’re eyeing a Stocks & Shares ISA, a General Investment Account, or a drawdown plan for your pension, it’s crucial to grasp the level of risk involved before diving in.

Our independent advisers are here to recommend the portfolio that best suits your needs, making sure you’re comfortable with the risks and that your investment aligns with your goals and objectives. We can recommend portfolios across a range of different risk levels using multi-asset funds that offer investment diversity, limiting your exposure to market shocks and offering access to a range of different assets.

Rest assured, your adviser will recommend what’s best for you, considering your risk tolerance and financial objectives. Think of them as your financial friends, always looking out for your interests while aiming for the growth of your funds.

Now, let’s break down a couple of key concepts

Attitude to Risk: This is how comfortable you are with risk in your investments. For example, you may consider yourself to be an adventurous investor. If this is you, you might be willing to take the risk of greater losses in favour of higher growth potential for your funds. Alternatively, you may be cautious, happier to aim for lower potential growth in return for a less volatile investment experience.

Capacity for Loss: This is the level of financial loss you can handle without affecting your standard of living or your ability to meet your financial commitments. It’s like a safety net for your investments.

Remember, your attitude to risk and capacity for loss might not always line up. You might be able to handle a loss but prefer to play it safe. That’s where your adviser steps in, using all the information you’ve given to tailor their recommendation just for you.

So, speak to us today to find out what strategy could help you to unlock the potential in your savings and make them work harder for you.