FAQ:
1. What is the difference between wealth accumulation and wealth
preservation?
2. When does the preservation phase begin?
3. When should I start thinking about wealth preservation?
4. What are some typical situations where my accumulated wealth will be
negatively affected?
Process
When working with you regarding your wealth accumulation and preservation, we engage in a wide range of activities. Our holistic approach means it can be difficult to get in all down in one list, especially given how much our customers financial situations can vary.
That said, in a typical situation the first thing we do is evaluate your capacity to take risk. We do this by answering some key questions:
What Is My Risk Tolerance?
There are many things to consider when determining the answer to a seemingly simple question; “What is my risk tolerance?” The answer will vary based on your age, experience, net worth, risk capital and the actual investment being considered. There are investments for every level of risk tolerance, from capital guaranteed investments to 100% equity funds. Your Advisor will complete a risk questionnaire with you prior to making any recommendation which will give an indication to your risk tolerance. Once this process has been completed we will be able to apply the knowledge to a balanced and diversified investment portfolio to suit your risk profile.
What’s my available Investment Amount?
How much money you have to invest will dictate how far you can spread your investments and how much you will need to retain as an emergency fund. What is the right term for me? What is the ideal timescale for the best return on your investment?
When will I need to access my investment?
Is it likely that you might need access to some or all of your funds in the short term? Based on the answers to the above questions, we build a suitable portfolio based on your capacity & appetite for risk. Although wealth preservation does require some risk; the key is to also balance some of the volatility that is the nature of investments. Over time, the funds within your portfolio will perform differently. Proportions held in the different assets will change. Therefore, we work with you, taking action to rebalance your portfolio to maintain your risk level. Many people approach their maximum earning potential in their forties. This is when portfolios might begin to shift toward a mix of growth and preservation- oriented strategies and investments.
Planning your Investment Your Blackhall Financial Services Adviser will ask you some key questions to ensure you have all the information you need to make the right choice. What Is My Investment Goal? The most important question to consider before making any investment is, “What am I trying to accomplish?” Your investments will differ vastly if, for example, you are trying to save money for retirement versus trying to save money for a down payment on a house.
