Capital Horizons has simplified its approach to this part of the process and broken it down into four distinct phases
- What are your current assets/liabilities?
- How are they structured?
- What is the amount of investable income you are willing to allocate?
- Age of beneficiaries?
- How long are the beneficiaries from retirement?
- Would you focus on income generation or capital appreciation or a balance?
- What is the approximate loss over a one year period that you would consider acceptable?
- Safe investments do not usually outperform inflation rates and tend towards a decrease in purchasing power.
- What currencies will you require your income in?
- Very often, the amount of money available for investment competes with other interests. E.g. If the family decided to buy a jet, it is millions of dollars which will not be available as investable income.