So what is your investment risk profile?
Your risk profile essentially relates to your
attitude toward investment volatility and is really a measure of how
comfortable you are with things like the possibility of negative returns on
your portfolio, experiencing returns that might vary quite dramatically from
year to year, and also the possibility that you might not achieve the returns
that you need.
Now it's important to
understand the expected investment risk and likely returns of a asset class or
strategy that you put together and also have it fit with your personal
situation and your financial goals. Other factors to consider when we’re helping
you to establish your risk profile would be your willingness or perhaps not, to
accept the possibility of a negative return, obviously with the trade off being
potentially higher returns over the longer term. Your investment goals and
objectives; why are you investing your money? What are you hoping to achieve? Your
investment time frame; after how many months or years are you going to need to
access this money? What experience and understanding do you have of financial
markets and also your age and the stability of your ongoing income are factor
in determining what your risk profile really should be.
In short, working with a
specialist investment financial planner to establish your risk profile is a
really key piece in terms of putting together your overall investment strategy.
When it comes to investments
that could potentially impact on your family, it is vital that you seek
appropriate financial advice from a licensed financial adviser.
There are no ‘one cookie
cutter’ solutions for investments and factors that play on the returns you will
see can be determined by your personal situation, so it is important to sit
down and discuss these with an adviser.
Future Assist have Licensed
Financial Advisers in Sydney, Melbourne, Brisbane and the Gold Coast and can
arrange your FREE initial consultation in the comfort of your home, in our
office or via Skype.
Contact Future Assist today: 1300
118 618
Or, contact us on the Future Assist website here >
Thanks to share this useful topic. Keep posting :)
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