Attitude to risk relates to life cycles

Author: Michael Pagliari, James Kirk (

Categories: Business Growth, Business risk, Tax Planning
Tags: draw-downs, inheritance tax, life cycles, porfolios, risk

Attitude to risk may depend on the age of the client or the business. Younger people lean more towards risk, as Michael Pagliari explains in this TV show.

The young person's attitude to risk

I think that goes back to sort of life cycle questions.  As clients are younger and are looking to build assets they may well have a higher disposition towards risk and that might lead them towards more growth-type portfolios.  As clients advance through that life cycle and perhaps sell a business or begin to retire then it’s really a question about draw-downs and inheritance tax planning and so on, and portfolios tend to de-risk to some extent.  So as you grow through that life cycle portfolios do tend to sort of de-risk over time.

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