Savings & Investments

Savings

Saving and Investing on a regular basis in order to build up significant funds is common knowledge to many and a relatively simple process to establish. Selecting the most tax efficient option for your own savings, or for children or grandchildren, can be more daunting simply due to the number of options available.

A financial plan including short and long term goals will help identify your objectives, when you wish to achieve them and how much money you will require to make your goals a reality.

More details on specific savings options are explained in our recent articles which can be found here

Investments

We do not “chase profits” for our clients; a more measured approach to investing is required. Our clients have worked hard for their money and value a professional approach which preserves wealth as a key objective.

We firmly believe that the art of investing can be likened to a good round of golf. Golfers will tell you that their club champions are the ones who consistently apply sound course management to their game. This alone, while increasing the probability of success to a degree, dramatically decreases the probability of having a bad round.

There is no excuse for having a “bad round”, but many investors do – even those taking advice from stockbrokers. This is because their approach is one of chasing profit rather than preserving wealth. It can take many years for a “bad round” or bad year to be recouped. This is why sound financial management – decreasing the probability of a bad year – is the approach which Acumen Financial Planning recommends. A copy of our Investment Philosophy is available by contacting the team.

Risk Management

Before investing a penny, it is essential that both the client and adviser agree on how to deal with risk. Client circumstances feature large in this discussion. Regulators and those in the retail advice chain, such as banks and building societies, are obsessed with “attitude to risk” and documenting a client’s attitude to risk. However, many clients cannot communicate their attitude to risk because they have never thought about it and don’t know what the risks of investing are.

Acumen Financial Planning’s approach is to look at risk from a practical point of view, entering into detailed discussion with clients on volatility of markets being a fact of life and whether or not client circumstances and risk tolerance will allow them to take advantage of volatility or not.

Either way, managing risk through understanding market history and diversifying investments across several different asset classes decreases the likelihood of a bad investment experience, whatever our clients’ circumstances and risk tolerance happen to be.

Interested in joining team AFP?

We are currently recruiting for Paraplanners at our Edinburgh and Aberdeen offices. More details can be found here.