A diversification strategy will help you achieve more consistent returns over time and reduce your overall investment risk. The term correlation is used to describe how one type of investment behaves in relation to another. If two types of investments behave similarly, they are said to be positively correlated.
If they behave differently, they are negatively correlated. So, whether the market is bullish (rising) or bearish (falling), maintaining a diversified portfolio is essential to any long-term investment strategy. While markets can always have a bad day, week, month or even a bad year, history suggests investors are much less likely to suffer losses over longer periods.
Investors should aim to keep a long-term perspective. When it comes to creating an investment portfolio to help you maintain your quality of life during retirement, it is essential that you diversify to help you achieve your desired returns while managing risk.
This means balancing the investments you have in your portfolio among different categories, classes and industries so that in a given economic situation they don’t all go up or go down together.
- Discretionary Fund Managers
- Market timing
- Minimising risk
- Multiple asset classes
- Portfolio insulation
- Pound cost averaging
- Principles of investing
- Children’s pensions
- Defined benefit (or final salary) pensions
- Defined contribution pensions
- Personal pensions
- Self-Invested Personal Pensions (SIPPs)
- The state pension
- Annual allowance and lifetime allowance limits
- Busting myths about pensions
- Increases to pension age and new normal minimum pension age
- Pension freedoms
- Pension withdrawal methods
- The lifetime allowance
- Delaying retirement
- Generating income from investments throughout your retirement years
- Importance of a retirement wealth check
- Retirement goal setting
- Retirement planning
- Reviewing your retirement plan
- Staggered retirement
- Taking control of your retirement plans
- What can I do with my pension?
- What happens to my pension on death?
Growing your wealth
Goals based investing
- Cash flow modelling
- Creating a financial roadmap
- Investment objectives
- Timescales and market activity and the impact of losses
- ‘What if’ scenarios
- Discussing legacy planning with your loved ones
- Inheritance Tax (IHT)
- Inheritance Tax Residence Nil Rate Band (RNRB)
- Lasting power of attorney
- Lifetime transfers
- Making a Will
- Preserving wealth for future generations
- Protecting your assets for the next generation
- Slicing up your wealth pie