Step 4 · Capacity for Loss
Capacity for Loss Assessment
Sarah Mitchell ·
Assessed — Medium Capacity
Combined Risk Profile
ATR Band
Moderate
Capacity
High
Combined Profile
Medium-High
Client has High capacity to absorb investment losses. Financial resilience is strong across all assessed dimensions — income buffer, emergency fund, time horizon, and investable asset base all support a medium-to-higher risk portfolio approach.
Assessment basis
Monthly surplus
£2,500 / month
+2 pts
Emergency fund
12 months essential expenditure
+3 pts
Years to retirement
8 years
+2 pts
Liquid assets
£150,000
+2 pts
Investable proportion
60% of wealth
+3 pts