None of us have a crystal ball to predict what returns you’ll receive as an investor.
Any financial adviser giving you a prediction when you ask this question is purely speculating. And we would counsel you to avoid such an adviser.
At Longhurst we construct investment portfolios designed with one sole purpose – to serve your life plan.
During our initial meetings we will have a thorough discussion with you around how capital markets work; the role of temporary volatility in your portfolio; and what risk really means to you as an life-long investor.
After this we will then build you a bespoke life-time cash-flow forecast, showcasing the different life outcomes you could achieve if you followed through with different financial decisions.
One of these financial decisions will relate to how the underlying asset allocation of your investment portfolio, and the weighting between equities (the Great Companies of the world) and bonds (fixed interest securities), could, based on empirical data, impact long-term returns for you as an investor.
These outcomes will then shape how the portfolio is built.
Once built, the portfolio will then be monitored and reviewed each year.
But we won’t build a portfolio without first building a financial plan for you.
Understanding that the investment portfolio is purely a servant to your life plan.