Wealth Management in Cambridge

Investing in today’s uncertain world and maximising investment returns without taking too much risk is a real challenge.

professional advice

Investing in the right assets and achieving the right balance is vital

Therefore, getting investment advice from a professionally qualified investment adviser has become increasingly important. However, there are other factors to consider and that’s where using the services of an independent professional investment adviser can provide you with greater peace of mind. Why do you need professional investment advice?
professional advice

Restricted versus Independent Advice

It is very easy to receive inappropriate advice from someone acting as if they know what they’re talking about. We have seen many examples of this from organisations with their own agenda, e.g. they offer restricted advice or are promoting their own range of products. The Financial Conduct Authority (FCA) calls this “shoe-horning” and despite their efforts to drive this out of the advice sector it is still happening every day. Therefore, it is very important to seek out independent advice from an adviser who is properly qualified and not restricted.
Not all investors have the same attitude towards taking risks. Some will have a higher tolerance for risk than others. Therefore, it is important to understand what your own tolerance for risk is and what your capacity for loss might be. In simple language your capacity for loss means how much money you could afford to lose without it affecting your standard of living. One of the first things a professional adviser will do is discuss this with you and, using risk and capacity for loss questionnaires, help you understand how much risk would be appropriate for your personal circumstances, aims and objectives. Once your risk tolerance and capacity for loss have been identified, discussed and understood, only then can you invest with realistic expectations and truly understand the relationship between risk and reward.