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I'm looking for a way to calculate the risk level that would be acceptable when choosing a SIPP or ISA provider.

03 November 2021

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Question by John

I was looking for a way to calculate the risk level that would be acceptable when choosing an ISA provider.


Answered by Luke James

Hi John,

Thanks for your question.

The risk you are willing to take is more to do with the investments/fund choice within your ISA and less to do with the provider themselves. Each provider should have a range of funds to choose from that match a variety of different risk levels.

There are attitude to risk profilers available online that will give you an indication of what type of investor you are. Just answer a few questions and it will give you a level somewhere between very cautious and very adventurous.

However, you also need to take into account what your "capacity" for loss is. That means how much could you lose without it affecting your lifestyle. The higher this is the higher the level of risk you could take.

If you are looking around and trying to decide on a provider and need some help then I would be happy to talk through some options with you.

Thanks
Luke James

Independent Financial Adviser

Answered by

Luke James

Independent Financial Adviser

I like to think that I am a bit different compared to most other financial advisers. I like to help people achieve their life goals, whether that be retiring early, buying a new car or helping your kids through university. That is what is most important to me and to most of the people that I meet. Money is just a way to get there!