News & Views

Are you investing your assets sensibly?

Are you investing your assets sensibly?

This is a big question which ought to be considered as most people will at some point in their life depend on a pot of money to maintain their desired lifestyle.

If you are going to invest your assets sensibly, it’s really important to ask yourself the following key questions:

  1. How much risk am I willing to take?

If my investments fell in value, when would I start to feel uncomfortable?  For some investors, this might be 20% and for others, as high as 50%.  Once you have considered how much risk you are willing to take, it’s then wise to calculate how much risk you are able to take.

  1. If my investments did fall in value by say 20%, what impact, if any, would this have on my desired lifestyle or retirement plans? Would you still be able to live the life that’s important to you and your family?

Last and by no means least,

  1. Do I need to take this level of risk to achieve and maintain my desired lifestyle?

In other words, you might be willing and able to take a certain level of risk however it might be that you can live the life that’s important to you and your family, by taking less risk.

When it comes to investing your assets sensibly, it’s vital to consider how much risk you are willing, able and need to take.  Without exception, every new client we meet is taking more risk than they need to take and often, more risk than they are able to take.

Do you know how much risk you are currently taking with your investments and is this consistent with how much risk you are willing, able and need to take?

If you have any questions or wish to discuss any points in this blog, please get in contact with a member of the Wells Gibson team.