David Coombs: Too little risk is a dangerous thing

In the know

clock • 5 min read

Too great an emphasis on ensuring people do not take on too much investment risk could be creating a completely different kind of problem, argues David Coombs, as he highlights a case study: 'dear old dad'

My dear old dad recently celebrated his 80th birthday. He retired back in 1981 and has lived off his relatively modest investment portfolio ever since - some 38 years. The first year, his portfolio was managed by the private client department of the bank he had been with since he first opened a chequing account. They shall remain nameless - not least because he had to sack them after 12 months due to poor performance. Thereafter he managed his own money - with the help of Investors Chronicle - until five years ago when he felt that, given I had then racked up 30 years in the business,...

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