The Case of ‘Too Much Risk’ - Financial Planning Specialists

Cooper & Associates Wealth Management
Weir Bank
Bray
Maidenhead
Berkshire
SL6 2ED
Tel: 01628 762694
Fax: 0872 111 5668
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Wealth Management

The Case of ‘Too Much Risk’

Mr & Mrs ‘Sold Up’, after grafting for over 30 years, had recently sold their business. Now aged 60, with no children, their primary concern was to ensure a high return on their capital.

Two different financial advisers had discussed various investment scenarios. Each of the advisers had put forward their recommendations based on the ‘risk/reward’ profile they had identified for the client.

To satisfy the requirement for a high return both advisers had recommended a fairly adventurous investment portfolio heavily weighted towards equities and other volatile asset classes.

However, before investing their money, Mr & Mrs ‘Sold Up’ were advised to speak with one of our ‘numbercrunchers™. He helped them identify the cost of their lifestyle over the remaining period of their life, allowing for inflation and the cost of possible long term care. He also discussed and included certain financial goals and objectives that would make their retirement more fulfilling and meaningful.

Using sophisticated financial planning software and financial modelling techniques our ‘numbercruncher™’ came up with some surprising conclusions.

He was able to demonstrate that a return of just ½% above inflation would be sufficient to ensure they never ran out of money.

Our ‘numbercruncher™’ helped Mr & Mrs Sold Up understand their number. He helped them understand that there was absolutely no need for them to flirt with unnecessary risk. What they needed, in fact, was a lower return with more certainty - a tax efficient portfolio which would give them the peace of mind to enjoy their retirement without having to worry about the markets.

Our ‘numbercruncher™’ saved them from the hefty, and unnecessary, capital loss they would have experienced if they had invested in volatile equities.

As they now understood their number they made a much shrewder decision.
Mr & Mrs ‘Sold Up’ continue to enjoy their retirement and our ‘numbercruncher™’ continues to meet with them on an annual basis to review their number.

More often than not the discussion involves how much more they can afford to spend to make the most of their carefree retirement.

It pays to know your number!

Related stories:
	The Case of Mr & Mrs ‘Are We There Yet?’
	The case of Mr & Mrs ‘10 Years Younger’
	The Case of ‘How Much is Enough?’
	The Case of Mr & Mrs ‘Do-It-Yourself’

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In this section:
	The Case of ‘Too Much Risk’
	The Case of ‘How Much is Enough?’
	The Case of Mr & Mrs ‘Do-It-Yourself’
	The case of Mr & Mrs ‘10 Years Younger’
	The Case of Mr & Mrs ‘Are We There Yet?’