Attitude to Investment Risk

Your attitude to risk is one of the most important elements in deciding how best to take the benefits from your pension funds. If you are considering the use of alternatives to a conventional annuity to generate income for you in retirement, it is essential that your attitude to investment risk be assessed. If you are prepared to accept the possibility of future fluctuations in your income and the value of your funds, it is also the key to determining how your pension funds are invested.

Attitude to risk has traditionally been expressed in terms such as cautious, balanced or speculative, however we now apply a more rigorous approach to determining your tolerance of investment risk.

By using a specially developed risk questionnaire we are able to objectively establish your attitude to risk. The questions are designed to enable us to understand your feelings and attitude to such issues as;

·        Short term fluctuations in your investments

·        Inflation

·        Returns against inflation

·        Timescales for investment

Once this has been established, we use a sophisticated scoring model to determine an asset allocation suitable for your own personal attitude to risk.