Are you doing enough to meet your long-term investment goals?


In our experience, many attorneys are not.


It’s more important than ever to safeguard personal finances and ensure that one’s investment portfolio is aligned with both long-term investment goals and short-term needs. Surprisingly, despite protecting their clients’ best interests, lawyers are often guilty of falling short when it comes to their own – albeit unintentionally. With a volatile global economy and an unstable local political economy, many simply do not know where or how to invest their money in the most efficient way.

Taurus Capital is a bespoke financial service provider to the professional and legal fraternity with offerings that include wealth and investment services in partnership with Anchor Capital. Taurus has identified the need and opportunity for attorneys, and specifically directors of legal firms, to structure their investment portfolios in order to meet their short term need for liquidity, as well as their long-term investment objectives to ensure wealth preservation.

This can be achieved through diversification, a strategy which involves spreading capital across multiple asset classes and alternative investments. This serves to mitigate risk through over exposure and reduces volatility over the long term, all with the goal of boosting returns – even in markets where it’s exceedingly difficult to do so. According to Taurus Capital, it’s a strategy that’s vastly underutilised by the legal fraternity, despite their aversion to risk.

Generally, legal clients’ investment portfolios seem to have a high liquidity profile and a penchant for immovable property. The reasons for these allocations seem to lie in an all-consuming love of property and a need for liquidity. The latter can be attributed to a director’s need for being able to plug short-term cashflow holes in the running of their day-to-day business. A cash gap is especially evident in law firms. That said, this short-term need for liquidity can easily negate long-term investment goals if a portfolio is not structured correctly. An overweighting of typical liquid investments which attorneys favour (for example cash in bank) tends to weigh down negatively on the overall portfolio returns.

The CEO of Anchor Capital, Peter Armitage, speaks about a philosophy of “live in the sun and invest in the shade”. His key takeaways for investors are currently:

  • diversify your portfolio to mitigate risk
  • globalise your portfolio
  • invest in the future

These are key points that should be implemented into any investment portfolio. Expert wealth managers can assess the risk profile of an individual on a case-by-case basis to create a bespoke portfolio that meets specific financial objectives and risk appetite.

We know that investing is a delicate balancing act and that there’s a fine line separating risk from reward when constructing an investment portfolio. There’s immense pressure on today’s law firm directors to have a firm grasp of project management and technology, as well as a comprehensive understanding of financial basics. Taurus Capital believes that wealth management should be one less thing for them to feel accountable for.

If you would like more information on investment and wealth management opportunities, please contact Taurus Capital directly.

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