Informed financial planning keeps bottom line targets realistic

Author: Michael Pagliari, James Kirk (

Categories: Business Growth, Business risk, Getting advice
Tags: bottom line, expected return, financial repression, portfolio, risk
Informed financial planning with trustworthy advice means that entrepreneurs can make appropriate, realistic, investments. Michael Pagliari explains in this TV show.

Informed financial planning and bottom lines

Lots of entrepreneurs sort of start with double digit return expectations and in an era of financial repression with interest rates at zero that is ambitious and I think it’s very important that you don’t play along with the client and say ‘okay, fine, let’s do that’, I mean you have to actually explain to him that to get to 10% there’s going to be some significant risks in the portfolio. Personally what I’ve found is that most clients actually have a fairly modest sort of bottom line expected return and it’s really in case they’re in the concept of protecting against inflation and perhaps adding something at the margin. So whilst tens might be ambitious, in this kind of environment five might be a more realistic sort of bottom line target for many of the portfolios that I manage. Investment does involve risk. The value of investments can go down as well as up. This video contains information believed to be reliable but no guarantee is given. See Video for full disclaimer.

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