FORWARD FINANCIAL PLANNING LTD

forward logo

Quote to Build your own portfolio in 6 steps

Client Agreement

Step 1

Before you play this investment game please refer to an article in our guidance library called "Investment Planning and Asset Allocation" The article provides the theory, an overview of building a portfolio and the importance of asset allocation. You can view this at www.my-money.me  and enter "Guidance library".

Knowing the theory and real life can be very different so when you have read the article this simple game empowers you to simulate the implications to a portfolio on various asset allocations. How do you feel when you see the various illustrative losses in the event of a stock market crash? This will help you determine how you may wish your attitude to risk be manifested when we are at the stage of developing your financial plan with you.When we combine your selected manifestation of attitude to risk with our "capacity for loss" test, we will be able to advise you on an asset allocation that is right for you.   

 (i)Click the value of your portfolio and proceed to step 2

£

Step 2

We classify all the investment funds we offer as "insured" or "not insured." In the event of a "not insured" fund going into liquidation you could loose all your money in that particular fund, but if an "insured" fund went into liquidation as the description implies you would be eligible to insurance.Insured funds are only offered by products we obtain from Banks, Building society  National Savings or UK Treasury. 

We describe the amounts you have "insured"  or "not insured" as a manifestation of your attitude to risk The higher the percentage of your portfolio you have "insured" the lower your attitude to risk. The higher the percentage of your portfolio you have "not insured" the higher your attitude to risk. 

(ii)Click the % "insured"  "not insured" which manifests your attitude to risk, complete to steps  3 and 4 and your first "estimate " will appear at step 5

Insured Not Insured

Step 3

How much do you wish to invest per year? If you do not wish to make additional investments insert 0

£

Step 4

How much do you wish to withdraw per year? If no withdrawals required insert 0

£

Step 5

Investors use "not insured" products because they hope they can receive significantly higher growth  than by investing in "insured " funds. The estimates below assume

  1. "not insured" funds grow at  5% per annum after all charges
  2. "insured" funds grow at 1% per annum after all charges
  3. The above figures are reduced by inflation assumed to be 2% per annum 

The above assumptions may prove to be incorrect. The actual performance of your portfolio  will depend on the actual growth and the actual rate of inflation. The calculations will appear for you after you complete step 6.Please note the calculations do not take into account the impact of a stock market crash as shown in step 6

Click for quote then go to step 6 where the tool shows how a stock market crash could impact on your portfolio.

Hover the cursor on the graph to see TOTAL VALUE = INSURED + NOT INSURED

Step 6

Step 6 aims to show you the impact a stock market crash might have on your portfolio. Whilst the portfolio we would build would diversify your "not insured " investments this does not prevent the risk of loss to "not insured"  investments.

The tool allows you to simulate various falls in the stock market from10% to 90% to help you see how you would feel therefore testing that your portfolio is actually manifesting an attitude to risk that you are both comfortable with and is appropriate to your capacity for loss.

The tool assumes a fall in the value of your non insured investments after 5 years, - the markets could fall the week after you invest!

% Fall in value

Hover the cursor on the graph to see TOTAL VALUE = INSURED + NOT INSURED