It is often the case that advisers, brokers, fund managers and their clients do not fully understand the degree of risk they are taking, particularly following sustained periods of benign market conditions, such as those we are currently experiencing. With that in mind, I thought I’d provide you with a timely piece of poetry.
Throughout life we grow up hearing about the importance of setting goals. Right from being children we are encouraged to select study options for future career ambitions, which we may grow to not desire. Goals are evidenced in all the choices we make, whether it be supporting our children to establish themselves, choosing the right house type and location to call home, picking a vehicle to drive, positioning a business for sale and even to planning for retirement. The list goes on!
As a financial planning company advising many small and medium sized business owners (SME’s) this is probably the most asked question we get. Most SME owners have a deep attachment to their business as it was them who grew the initial seed from a fledging idea, invested their own capital in the project and took significant risk to grow the company or partnership in to a profitable enterprise.