Creating a map to achieve your objectives

A financial plan is a map of how to achieve a set of objectives using financial products and services. This also includes a risk analysis of potential threats to you achieving your goals.

A good financial plan takes into account your personal circumstances such as:

• Your age: this determines the amount of time you have in the market i.e your time horizon.
• Your earnings: this will determine how much you have to save and invest.
• Your family circumstances: do you have dependents?
• Your goals: what you want out of life in the short-, medium- and long-term.

The combination of these factors determines your risk profile. Your appetite for risk will also be a factor. This refers to whether you are willing to risk great losses for potentially high returns or, whether you prefer lower potential returns and reduced risk.

Bearing in mind the complexity of some of these factors, we recommend that you consult a professional financial adviser to help you structure and maintain a portfolio tailored to meet your needs.