Investment planning plays a crucial role in building wealth. It is one thing working hard and earning income but critical to achieving your financial ambitions is making the most of your financial resources over the relevant investment timeframe.
At Rockbridge Financial Planning we recognise that each client’s circumstances are unique yet the assessment criteria we use to develop and implement an appropriate investment strategy are consistent as outlined below:
||Areas for consideration and analysis
|Client Description and Broad Goals
- Overview and client goals/short and long term requirements.
- Classification and analysis of current investments.
- Clarify the investment return expectations.
- Identify the risk tolerance of the client.
- Identify the risk capacity of the client.
- Highlight the implications of any difference between the stated and actual investment risk tolerance/risk capacity of the client.
- Liquidity needs.
- Time Horizon.
- Tax Considerations.
- Legal and Regulatory Requirements.
- Consider any Unique Circumstances.
|Strategic Asset Allocation
- Investment Philosophy and Strategies.
- Capital Market Assumptions.
- Asset Allocation.
- Investment Constraints.
- Hiring, Firing and Monitoring Investment Managers.
- Risk Management:
- Communicate the specific risks and potential volatility associated with the asset classes.
- Analyse the security of the underlying investments and the investment providers
- Tax specific to Pension/Personal/Trust/Corporate investments.
- Injection of new capital.
- Generating income, growth or both during the investment term.
- Liquidating the entire portfolio or partial income drawdown.
|Implementation, Monitoring and Review
- Responsibilities and Governance.
- Performance Measurement/Evaluation/Benchmarks.
- Asset Rebalancing.
- Review Process.
The investment process can appear to be complex. Our role as professional advisors is to work closely with our clients and the various investment providers involved in ensuring that the process is streamlined, transparent and simplified as much as possible for the client yet consistent with their requirements, expectations and risk profile.