INVESTMENT PLANNING

The Benefits of Investing

Investing is not about making a quick buck. It’s the creation and application of a sound and appropriate strategy to maximise the likelihood of generating a positive return, while taking account of all the inherent risks. Investing requires patience, tolerance and time. If all these factors are present, along with a sound investment strategy and quality assets, then it is likely that a portfolio will provide a positive return to its investor. The benefits of which are then at the discretion of the investor. Whether they use their growth to buy a new house, take a holiday, put their children through school or simply reinvest it, enhancing their future growth and financial security, the benefit of investing is the propagation of your personal wealth.   

The Risks of Investing

It is impossible to guarantee an investment return (above the current cash rate) without taking on some form of risk. If it were possible, everyone would be doing it. And investment risk comes in many forms. Understanding the risks inherent with any asset or portfolio is critical to the investor’s ability to assess the appropriateness and appeal of an investment option. Some risks are obvious, and others not so. Identifying, understanding and taking action to mitigate all investment risks is one of the key purposes of engaging a portfolio management professional.   

Investments Appropriate to You

Some people avoid broadening their investment portfolio beyond direct property exposure on account of their preconceptions of the risks of investing in shares. What people often don’t realise is:

  • There are more investment options than just shares and property;
  • A portfolio can be as risky or conservative as the investor chooses; and
  • There are ways to manage any investment risks. 

Certainly one of the riskiest investments one can make is to invest in something without a full understanding of the risks. This is often the reason people who attempt investing in shares without seeking advice end up losing money.

Whether we’re constructing a new portfolio or managing an existing portfolio, ensuring the level of risk inherent in the portfolio is appropriate for the investor is of the upmost importance.

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