Successful investing is about much more than putting your money in stocks and shares. Initially you must decide what your future will look like, and then work backwards to understand what will be required to achieve these goals.
If you're thinking about investing for the first time, it may seem a rather daunting step. You might not be sure what the difference is between a share, a bond and a fund, let alone which one could be right for you. In reality, rather than focussing on a single product, your investment portfolio should be split between a range of asset classes. There are various ways to make sure your savings are working as hard as they possibly can for you. At Skybound Wealth UK we take the time to truly understand your aspirations for the future before formulating a strategy that will allow you to achieve your goals in a timely manner and in line with your attitude to risk. We will then make various recommendations, tailor-made to you, which may include any of the following:
Also known as the buy and hold strategy, used to minimise fees and provide a long-term investment horizon. Passive managers generally believe it is difficult to out-think the market, so rather than attempting to outperform they try to match market or sector performance. Passive investing attempts to replicate market performance by constructing well-diversified portfolios of single stocks, which if done individually, would require extensive knowledge on particular sectors.
This form of investing takes a hands-on approach and requires someone to act in the role of fund or portfolio manager. The goal of active money management is to beat the stock market's average returns and take full advantage of short-term price fluctuations. It involves a much deeper analysis and the expertise to know when to pivot into or out of a particular stock, bond, or any asset.
Discretionary Fund Management is when an investment professional known as a Discretionary Fund Manager (DFM) builds and manages a portfolio of investments on your behalf. The managers take into account how much you have to invest, the level of risk you are prepared to take, your financial goals, and your tax position. Once the portfolio has been built, the Discretionary Fund Manager will make ongoing decisions about the portfolio using their own discretion. financial goals, and your tax position. Once the portfolio has been built, the Discretionary Fund Manager will make ongoing decisions about the portfolio using their own discretion.
At Skybound we are bound together by a common goal and our success relies upon the realisation of your investment goals. Our team of financial planners work alongside you to determine your financial goals and relate these to your time horizon. Your investments and your plan will be customised to your financial aspirations and investment profile.
Market falls are a normal part of investing, not a sign something has gone wrong. What matters is whether your portfolio is built with your time horizon and risk tolerance properly accounted for in advance, so a downturn doesn't force you to sell at the wrong time. We stress test your plan against market falls when it's built, and review it regularly, so you know in advance how it's designed to behave rather than finding out during a downturn itself.
Money earmarked for something in the next few years should generally be treated differently to money you won't need for decades. We build your investment strategy around a clear timeline of what you need, and when, so a market downturn ahead of a school fees payment or a house purchase doesn't derail those plans. Retirement savings, by contrast, can typically absorb more short-term volatility given the longer runway.
It depends on the size and complexity of what you're investing, and how much you want to be involved in day-to-day decisions. A DFM can add real value where a portfolio needs active management around tax events, income needs or changing risk exposure. For simpler goals with a long time horizon, a lower-cost passive approach may achieve the same outcome for less. We'll talk you through the real cost and benefit for your specific position rather than defaulting to one answer.
This depends on your income, where you're tax resident, and whether you have access to offshore structures as an expat. In the UK, that typically means making full use of ISA and pension allowances before considering a general investment account, and for those with more complex or cross-border positions, offshore bonds can offer valuable tax deferral. Getting the order right, and reviewing it as your circumstances change, is where a lot of the value in advice actually sits.
It can be, particularly if your salary, bonus and long-term wealth are all tied to the same company. A downturn at that business doesn't just affect your job, it can hit your investments at the same time. We look at your total exposure across salary, equity compensation and personal investments together, and where concentration is high, build the rest of your portfolio to diversify away from it rather than simply adding more of the same sector or region.
You can reach us directly by calling us between the hours of 8:30am and 5pm at each of our respective offices and we will immediately assist you.
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investing in shares should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.
The guidance and/or advice contained within this website are subject to the UK regulatory regime, and are therefore targeted at consumers based in the UK. Skybound Wealth UK is a trading style of Skybound Wealth Management Ltd who are authorised and regulated by the Financial Conduct Authority. Registered Office - Alum House Suite 12, Discovery Court Business Centre, 551/553 Wallisdown Road, Poole BH12 5AG. Registered Number 04479650, England. Financial Conduct Authority Number 217994.
The information contained within this site is subject to the UK regulatory regime and is therefore targeted primarily at consumers based in the UK. The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk. Neither Skybound Wealth Management Ltd nor its representatives can be held responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.
