Our Goldilocks investment strategy

When investing your money there are three key things that any good adviser must discuss with you right at the start.  These three things are not about “timing the market” or “picking the right shares”

1. Attitude to risk

We all have one – it’s how we feel when we see sharp falls in the stock market. We measure your attitude to risk using a psychometric test and align the outcome with the optimum asset allocation.

2. Asset Allocation

Each risk level 1 through to 10 (1= lowest) has an optimum asset allocation with a Goldilocks aim. The aim is to get the optimum amount in those highest risk assets (shares) so that as much growth as possible can be achieved but within your chosen risk level.  Too little shares and not enough growth and too many shares bring too much risk. There are several asset classes but the main ones are:

• Cash – lowest risk
• Bonds
• Commercial Property
• Shares – highest risk

It’s vital that you and we understand your attitude to risk and what asset allocation this translates to

3. Ability to Bear Loss

Put simply how vulnerable are you if your pot of money fell in value?

Imagine that Goldilocks had a twin sister. Being twins they both scored risk level 7. But twin A wants her pot for a purchase next year whereas twin B will use her pot in 20 years time. So B has a much bigger Ability to Bear Loss than A .After discussion A  decides to de risk to level 4.

But what about the fund managers?

We don’t  research funds? – Shocking? no – your GP does not mix your medicine by hand- he/she uses tried and trusted therapies researched by others – their time should be spent on you!

We are the same – we use an independent research company to combine and review funds.

Annual Review- things will change over the years We will contact you each year to discuss these issues and then seek your permission to make any changes so that we keep  you in the Goldilocks zone.