Description

Whether you have a particular investment goal in mind or you are simply growing a retirement fund, it is important to understand risk. The likelihood of losing some or all of your original investment should be fully understood, as well as your tolerance for the level of risk you are willing to undertake. Tony talks about planning your investments while fully comprehending the risks involved. 

KEY TAKEAWAYS

• Higher risk investments often have greater returns but there is more chance of you losing your money. 
• By using investment funds, which pool your funds with other investors which are spread across a range of investments, you can reduce your risk. 
• Investments in shares can circumvent the negative effect of inflation on your savings accounts but there is always the possibility that the value of those shares are low when you come to sell. Property and bonds can also fall in value.
• Currency risk is when you lose money due to fluctuating exchange rates in the currency markets. 

BEST MOMENTS

‘Risk 'means different things to different people. What you feel about it depends on your individual circumstances and even your personality.' 

‘There is no such thing as a no risk investment. You are always taking on some risk when you invest, but the amount varies between different types of investments.'

‘What about liquidity risk? You are unable to access your money when you want to because liquidity can be a real risk if you hold assets such as property directly, and also in the bond market where the pool of people who want to buy and sell bonds can dry up.' 

‘Lastly there are interest rates. Changes in interest rates affect your returns on savings investments even with a fixed rate.'

VALUABLE RESOURCES

Tony Talks Wealth - https://omny.fm/shows/tony-talks-wealth  
Sign Up Now For Exclusive Tony Talks Wealth Content at https://www.patreon.com/TTWealth  

Risk Questionnaire: Assess your attitude to risk | Investments | Standard Life

ABOUT THE HOST

Tony Thomas is a published author, one of the top financial advisers in the UK voted for by his clients, the first Chartered Financial Planner in the UK, Independent Financial Adviser, Mentor, Trainer. Life Planner and Money Coach. He is also a pension and investment specialist as well as the regional Chartered Champion for South Wales.  

“Live For Today, Invest For Tomorrow”

CONTACT

Tony's official website: https://ttwealth.co.uk/
Facebook: https://www.facebook.com/TonyThomas.IFA/
LinkedIn: https://www.linkedin.com/in/tonythomas2/

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