Clear goals and sensible risk levels 'essential for investors'

Defining life goals and managing risk are the keys to successful private wealth management, according to one analyst.

In an article for Bankrate, Dr Don Taylor explained establishing clear objectives is vital for effective financial planning.

Vague ideas about a comfortable retirement should be replaced by definite targets to ensure individuals stay focused and committed, he continued.

People with private wealth must also work out an overview of their financial plan across all their investments, Dr Taylor said, which could benefit from the help of a financial adviser.

Additionally, establishing risk tolerance is crucial for investors' peace of mind, he remarked.

"If you find yourself tossing and turning at night and it's not your mattress but rather the markets keeping you awake, then it's time to dial down the risk in your portfolio," the analyst commented.

His advice comes after Old Broad Street Research chief strategist Andy Brunner revealed most asset managers are predicting "sustainable expansion" on world markets in 2011.ADNFCR-2318-ID-800319124-ADNFCR