Scott: Investment Risk: Moving from Success to Significance

October 15, 2019 |

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Scott, Christian Pastor

Value based investing is an important trend in finance. Advisors can distinguish themselves by providing investment solutions that incorporate clients’ values. Scott, a Christian pastor, talks about moving from success to significance for all age groups.

‘Finding your passion’ is a frequent career advice, especially for young people. This can involve taking more risky options. Even if the chances of success are small, at the very least you avoid the regret of not having tried, and then spending the rest of your life wondering if it might have worked out. Whatever choices we make, we have an element of trust or faith that things will go according to plan, even though we know things don’t always work out. Young people can afford to take some career risk, because they have time to ‘start over’ if their first hopes and dreams don’t work out.

The real meaning of following one’s passion means you are willing to suffer for something. For career choices, this can involve finding work that is especially satisfying, even if the financial rewards are less. For investment choices, this can also involve a lower return, but have a greater positive impact for the world. Some difficult choices may need to be made between optimising returns compared to overall significance.

Making a choice for significance can bring unintended or unexpected outcomes, including positive ones. Problems encountered will have solutions, as described in the following quote:

“Until one is committed, there is hesitancy, the chance to draw back, always ineffectiveness. Concerning all acts of initiative (and creation), there is one elementary truth, the ignorance of which kills countless ideas and splendid plans: that the moment one definitely commits oneself, then Providence moves too. All sorts of things occur to help one that would never otherwise have occurred. A whole stream of events issues from the decision, raising in one’s favour all manner of unforeseen incidents and meetings and material assistance, which no man could have dreamt would have come his way. I have learned a deep respect for one of Goethe’s couplets:

Whatever you can do, or dream you can, begin it. Boldness has genius, power, and magic in it!”

― William Hutchison Murray

Understanding your client’s views on risk is essential to provide great client service. Attavita Risk determines each investor’s risk preference, risk capacity and risk/return needs in an easy and intuitive way. Investment preferences, based on investor values, are also identified. As circumstances change, Attavita Risk recalibrates the appropriate investment portfolio risk levels. Attavita Risk enhances client service, in both the short and long term.

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