The accumulation of capital refers to the gathering of objects of value. Our clients build their wealth in a number of ways.
Accumulating cash in a bank account is rarely sufficient as it seldom keeps pace with inflation particularly so in our current low interest environment. Gambling on individual stocks, like horses, hardly pays off unless you are very skilled or maybe very lucky!
Real wealth is accumulated by combining three factors, these are;
- The Period that investors build their wealth for
- The makeup of the portfolio
- The strategy used and the quality of the advice taken
Increasing the Time Horizon
The time taken is obviously dependant on the age of the wealth accumulator and his/her working life. Needless to say the longer the better as higher risk investments need time to mature, dollar/pound/euro cost averaging can be of great value over the longer term and as below, higher risk investments are desirable.
The Makeup of the Portfolio
It is essential to get this right and it is probably different for nearly every client. Due to risk, age and time, many asset types should be used as there is great value and security in spreading the risks.
The Strategy Used and the Quality of the Advice Taken
Many leave this proviso out but actually it is the most important. Most KMI clients are very busy people and they have limited time to concentrate on their own investments. So the right strategy, tailored to the client's specific needs is required. KMI believe the quality of our financial advice is equal to any on the market and we ensure it is bespoke to our clients needs.
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