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  Phone  01603 452686






Later Life Issues

Contact NFA



Call: 01603 452686



What is the best way to

arrange my Investments?


How should my Retirement

Portfolio be constructed?


How much risk can I

afford to take?


How much income can I get?




NFA provides Investment Advice and Portfolio Management options for both more experienced and new investors.

NOTEThe value of investments can go down as well as up and you may not get back as much as you put in.


The questions above are just a few examples of the many facets that need to be taken into account when new investments are being considered. 


It is not always possible to give definitive, highly accurate answers to all of these questions as there often are very many variables to consider.


As this is intended to be a web-site containing general information about pension- and retirement matters, NFA has no intention of entering into long discussions of advanced Investment-theory but will nevertheless present a few very generalised principles.


On the question of: 'What is the best way to arrange my investments?' there are many answers. Some will be more appropriate than others!


One fact that very few Investment professionals disagree upon emerged from a number of studies in the 1990s by Brinson, Beebower and co-workers.


What they showed was that the overwhelming determinant in portfolio success lies in the ability to select the right Asset Classes. Individual stock selection, market timing and other factors only play very minor roles in most cases:



It is important to emphasize that Asset Classes refer to generically different investment types such as stocks and shares, gilts, corporate bonds, real estate, commodities etc.


Shares in e.g. supermarkets, pharmaceutical companies, banks, telecoms, bookmakers etc. do NOT constitute different asset classes - they all belong to the same asset class (i.e. shares) although they cover different sectors within this asset class.


So, an (admittedly very simplified) answer to the question of how best to arrange your investments would be to allocate the funds available for investment to asset classes in the proportions best suited to achieving your objectives with due regard to prevailing market conditions and your attitude to risk,


Sounds a lot simpler than it actually is!  However, NFA has access to sophisticated proprietary computer models which greatly aid the rational allocation of individual funds to asset classes in a robust fashion.


Regarding the next question: 'How much risk can I afford to take?' the answer will have to be: 'That depends..!'.


It is important here to distinguish between your attitude to risk, your tolerance of risk and your actual capacity to deal with risk.


It is not much good that you may have a 'gambling streak' in your personality and a liberal attitude to risk taking, if it means that you will end up destitute if one of your investments turn sour!


That is certainly not good for you and it is certainly not a scenario that NFA would like to entertain!


As you will probably know, there is a relationship between risk and return. Generally speaking, the higher the return that you aim for, the higher is also the risk that you will have to take (as illustrated in the figure below).




In practical terms it is often possible to eliminate a lot of 'systematic risk' by careful use of diversification, thus reducing overall portfolio risk.


If you have no appetite for any risk and worry about smaller fluctuations the answer is simple: You should not invest any money but accept whatever rate you can get in the bank.


If you are willing to accept a small risk to some of your capital, investments with low risks can be considered (e.g. Gilts, AAA-rated bonds etc.). Such investments will fluctuate but will have a virtual 100% guarantee of return of capital if held to maturity.


On the question of: 'How much income can I get?' it should be remembered that we are living in a world of extremely low interest rates at the moment and still a not insignificant level of inflation.


If you are expecting 20% profit each and every year you will clearly have to take on quite a lot of risk,


However, if your aim is to beat the prevailing bank rates and keep pace with inflation then that is possible but some risk (albeit small) will have to be taken.


More precise figures and potential suitability (or lack of suitability) and specific advice can only be given once a more comprehensive examination of your financial and personal circumstances has been carried out.



Feel Free to call

NFA-Invest for a

free, informal chat

about your current Investment ideas and plans:

   01603 452686





The best time to plant a tree was twenty years ago.

The second best time is now!
























Weighing Up all the Options!


    Specialist Advice Areas

     Regulatory and Legal changes



Long Term Care is an issue that most of us would rather not think about. But should you, or your loved ones, need it later it can be VERY expensive if you have not prepared.




Although you may be entitled to a full or partial State Pension it is important that you also get to know what other benefits and support you may be entitled to in your later years.  Read More...►


Not very many people are aware of what Powers of Attorney really are or How they Work? You need to know that they In many cases can be of critical importance in a difficult situation.  Read More...►




New rules allow increased flexibility for pension drawdown arrangements. But there are important aspects which need consideration.


   Read More...►




Is Income Drawdown a ticking time bomb?

Law changes and low Gilt yields can have a large impact on drawdown Portfolios.


   Read More...►


You are always Welcome

to contact NFA for a free discussion

of your Pension Investment



Phone: 01603 452686









Norwich Financial Advice Limited  is authorised and regulated by the Financial Conduct Authority

and is entered on the FCA Register under FCA reference: 706645

Norwich Financial Advice Ltd. is registered in England and Wales; Company No. 8533929.  

Registered office: 74 Muriel Road, Norwich NR2 3NZ, Norfolk, England.

Decisions should not be taken based solely on the content of this website and individual advice should be sought first.

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The information on this website is aimed at UK residents or residents of MiFID countries