Financial advice to manage a portfolio of 1,000,000 Essay

Financial advice to manage a portfolio of 1,000,000 - Essay ExampleThis would rule out any advice that may involve buying speculative shares on the stock exchange. I would suggest that the direction we necessitate to take in this case is a ultraconservative approach, with the intention of safeguard the capital invested whilst at the same time, if possible, creating a small income to supplement.The other area we need to bear in mind is that you may also need to have reasonably quick plan of attack to the capital to either supplement the costs of your stay here, or for any other eventually that major power crop up that cannot be met from your present income sources.What we would suggest in this instance is that between 20 25% of the funds should be placed into a cash situation, such as a building society, throttle term bond with the ability to withdraw the funds relatively quickly if necessary. This will attract interest.The equilibrise of the funds should be placed into bands, but it is necessary to ensure that these are what we call safe, rather than dust bonds. Junk bonds are those issued by organisations that the market considers to be doubtful in nature. Whilst the return is higher, so is the risk.I have to mention here that all investments which are linked in some way to alliance stocks and shares, even the bonds recommended, can reduce in value as well as increase, although bonds values historically do not vary as much as shares.Its must also be remembered that there could be a tax implication, certainly on any interest earned, unless one has invested via a TESSA or ISA. In addition one has to taken into account the possibility of capital gains tax, which comes into force should the gain best a given amount.Single parents have some unique situations when it comes to their investment portfolio. You need to make 4 provisions. One would be for the future, your retirement. The second provision is to provide cash