Risk tolerance is one of the biggest factors in your investment decision process. Tony talks about how to decide how much risk to take depending on your circumstances, goals and individual comfort level when it comes to risk.
KEY TAKEAWAYS
- Consider how you would feel if your investments lost money in the short term. If this makes you anxious, you may be significantly risk averse. If you are comfortable with this circumstance, however, you may be able to take on more risk.
- Understanding if you are comfortable with volatility or stability and slower growth will help you decide which investments to make and over what time period.
- There is no such thing as a no risk investment but manage it by diversifying over the long term.
BEST MOMENTS
‘Your potential returns available from different kinds of investment and the risk involved change over time as a result of economic, political and regulatory developments.’
‘Volatility is a measure of how much prices fluctuate over time. Investments that are more volatile have bigger ups and downs in value, while less volatile investments will have slower steadier price increases.’
‘An interest rate risk is a particular risk for bond holders. We all have our own individual risk tolerance, and it's important to establish what that is.’
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
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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