Every investment comes with some form of risk, but deciding your appetite for risk can narrow down not just the options but the possibility of getting into a financial situation that you aren’t comfortable with.
“Once you know where you’re putting it it’s then how to invest it,” he added.
“You can’t build bespoke portfolios for clients, because a portfolio is only as good as the day it was built.
“The best performing fund in April/May was UK funds, in May/June it was property.
“This gives you an idea of how much the market moves.”
Mr Woodward recommends a funds-based approach for beginner or low-risk investors using the analogy of a swimming pool:
The financial advisors and planners are the lifeguards, and all the different stocks with a fund are the swimmers.