“The ultimate risk is not taking a risk.” – Sir James Goldsmith
When you go out for a meal, you will normally choose between beef, poultry and fish. It’s the same when you are investing; here the choices are between cash, property and shares. Like a balanced diet, you need to choose some of each because they all have different roles to play in your financial plan. It’s the job of the financial adviser to help each investor decide how much they should have in each category. This is called asset allocation.