Risk, And How To Control It

Michael Wilson

Bristol, 30th January 2014

Risk Is Good

• Did our parents get that wrong?

“Never risk money that you can’t afford to lose”

• What’s wrong with that? Let’s find out

What’s Changed?

Your Risk Profile – Some Key Questions

• Your Personality – Adventurous or Conservative?

• Your Age, Your Income and Your Personal Plans

• Your Family – 30-Something is an Expensive Age for Parents…

• Will Your Children Need Help To Get Started?

• Your Pension Arrangements

• Any Illnesses that Might Turn Expensive?

• Any Other Foreseeable expenses – And When?

• Do Financial Markets Actually Interest You At All?

“Never risk money that you can’t afford to lose”

• Never risk money WHEN you can’t afford to lose it”

• Makes more sense?

Why Equities Win (Barclays Equity Gilt Study 2013)

Bonds Versus US Equities, Total Return 1988 to 2008

(Ouch. Was Mother Right After All?)

Another look at those equity/gilt returns

Controlling Equity Risk – Some Basic Options

Do Absolute Return Funds work? Maybe……