Asset allocation is an important way your financial adviser provides upfront and ongoing value. Investors are rewarded for the amount of risk they take, but not every investor has the same attitude to risk.
An investor’s risk tolerance can also be guided by the stage of life the investor is at. Younger investors with a longer investment horizon will often allow themselves to increase their risk levels. Older investors moving closer to reaching their investment goals or retirement will often lower their risk to preserve the capital they have built.
It’s your financial adviser’s job to figure out the appropriate level of risk you’re willing to take. They will then build a portfolio that strikes the balance between risk assets, such as equities and listed real estate, and defensive assets, such as bonds/fixed interest and cash. The aim is to provide you with the highest possible return for the level of risk you are willing to take.
Good financial advice will ensure you have the right amount of each asset class according to your need. While a good financial planner will also ensure these assets are structured properly to ensure potential tax savings now and in the future.
Why FYG Planners?
Financial planning is about a relationship between you and your financial adviser. If they are working for you and understand you and your situation they will be looking to make your portfolio and financial circumstances more cost efficient. At FYG Planners our advisers are client first and operate on a fiduciary basis meaning they have your best interests at heart.
FYG Planners is a privately owned AFSL and the video below explains why this is important and why advisers who operate under our AFSL can offer a financial planning experience that puts your needs first. This is in contrast to major banks and institutions, where the advisers see their clients as sales targets without an incentive to lower your investment costs.
If you want to find an FYG financial adviser near you, all of our advisers can be found here.
If there aren’t any FYG advisers near you, please keep in mind many of our advisers, in addition to their local clients, already have clients across Australia. Skype and screen sharing have flattened the barriers to remote financial planning.