The buzz words in investment planning at the moment are asset allocation and risk tolerance. These a...
The buzz words in investment planning at the moment are asset allocation and risk tolerance. These are important but they are only two legs of a tripod. Over the past five years, the most beneficial improvement for my clients in my role as an adviser has been the development of cashflow modelling. A cashflow model calculates the growth rate a client requires if they are to meet their investment objectives. This rate is then cross referenced with their attitude to risk to ensure their expectations are realistic and compatible with the asset allocation needed to achieve the necessary gr...
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