Summer Financial Planning/Attitude to Investment Risk

There are usually some tangible times in a calendar year when financial planning is noted in clients diaries about what they need to undertake to maintain their overall planning strategy. The first more obvious one is the end of the tax year and to use up annual tax allowances, such as pension contributions or annual contributions to cash and/or stocks and shares ISA, to name just two. Others find that the end of the calendar year, towards Christmas, is a time to consider family and issues such as inheritance tax planning, maybe using the annual gift allowances in the process. Each client is different and has different objectives.

Summer is a time where many relax a little and enjoy the sun and the warmth (or sometimes rain!) of the season. This is a good time to review one of the less calendar bound aspects of financial planning which is investment risk and your attitude to risk at your life stage and overall financial strategy, if you have one.

We have detailed investment risk on our website for many years and this is detailed on the Churchouse Financial Planning Limited website here: www.churchouse.com/risk.php

However, this in itself raises a few additional questions about investment risk and these may reflect changes in your circumstances, such as your age, overall strategy, family circumstances or wealth.

• When is the last time you reviewed your attitude to investment risk?


• With your personal thoughts complete, when did you last link these thoughts to your investment choices of the past?


• Has a change in your circumstances, such as receipt of an inheritance changed your overall attitude to investment risk?


• How will you allocate your investment risk profile across your overall funds? Many clients allocate a proportion of their funds towards the lower end of the risk scale to protect against unforeseen expenses and capital requirements. This in itself may allow other investments to be placed at the other end of the selected scale.


• Do the investment choice decisions of the past now reflect your current thinking?


• Do you have any ethical/ ecological restrictions for your investments and does the current asset allocation reflect this? If uncertain, you may want to look at the website: www.eiris.org which provides independent investment research into the environmental, social, governance and ethical performance of companies.


• If required, how is the performance of your funds, such as pensions, unit trusts (OEICS),ISA’s, trusts, investments, portfolio’s, savings and alike benchmarked against a model index, using indices such as APCIMS? APCIMS is the Association of Private Client Investment Managers and Stock Brokers and their website is http://www.apcims.co.uk/


• How often should you be reviewing your attitude to investment risk? 6 monthly or annually, as examples?

These are only examples of what you may want to consider. You may have other points that will determine your attitude to risk, however, this blog hopefully probes further into your overall planning strategy to provide the potential to get the most from your investments and pensions as your life and wealth management develops. Whatever you decide to undertake this summer, don’t forget to review your financial planning.

We are all different and therefore, this article should not be seen or used as individual advice. Seek Independent Financial Advice (IFA) for your circumstances.

Churchouse Financial Planning Limited is not responsible for the content of the external websites noted in this article.

Keith Churchouse, FPFS
ISO22222 Certified Financial Planner , Chartered Financial Planner
Director of Churchouse Financial Planning Limited

Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority. The Financial Services Authority does not regulate taxation advice.

Churchouse Financial Planning Limited commended in Financial Adviser Life & Pensions Awards 2011.

I had the pleasure of being invited to join Melanie Tringham, Features Editor at Financial Adviser, the team and their guests to the FT Financial Adviser Life and Pension awards in Savile Row in London on the afternoon of 11^th May 2011.

A great and entertaining event was had by all and the lunch was delicious. Following this, the various industry and adviser awards followed with many excellent results. It is great to see our profession thriving with innovation to continue to show both its excellence and competitive edge.

Churchouse Financial Planning Limited was commended in the Small IFA Firm category and I was delighted to collect a certificate on behalf of the company. I am delighted that our business and the team has been recognised for its hard work and continued professionalism. Thank you to Financial Adviser for the accolade, noted below:

I would like to send a heartfelt congratulations to all those that received accolades yesterday and also many congratulations to the whole team at Financial Adviser for an excellent event.

No advice has been provided in this article.

Keith Churchouse, Director of Churchouse Financial Planning Limited, Guildford, Surrey

Chartered Financial Planners