Income Optimisation - difficult to get right when risk parameters are set!
Inflation is one of the key problems that will affect future generations, and investing a portfolio that will provide a sound level of income, protected against inflation is very difficult to achieve.
This is where a combination of income producing stockmarket funds and our Aqua commercial property syndicates make for an excellent income portfolio.
Inflation is the investors enemy, as has been seen so often in the past. At today's inflation rate of 3.8% every £1 coin that you own will be worth nearer 69 pence in ten years time! This is why it is most important that income investors build a portfolio that will work hard to keep its real value. With ever increasing longevity, it is now more important than ever to build a portfolio of real assets.
That said, the danger of a long recession could have a major effect on the near term levels of inflation.
In essence the main method of protection is to invest in assets that will keep pace with inflation, whilst providing an income that will also achieve inflation protection.
We believe that regular reviews of your risk profile as well as your portfolio are critical in our endeavours to secure your long term future.