Knowledge Centre

Risks of Investing

What are the risks involved when it comes to investing?

With any investment strategy, there is always going to be a degree of risk. Anyone that approaches you with a risk-free investment strategy is probably not from planet earth.

The key is how to mitigate your risk when looking at any type of investment. Risk by the way is another word for “I have no idea what I’m doing”. it’s like when you first learned how to cross the road, you looked left, you looked right and if safe, you crossed.

Why? Looking, enabled us to mitigate (to reduce or lessen) our risk. So when investing, it is best when we approach this with our eyes wide open and do more “Looking”. So what can go wrong and how do we mitigate our risk? Some quick examples are as follows: 1. Can’t find a tenant? Reduce your rent2. What if interest rates increase? Fix your interest rates.3.

What if I was to lose my job? Take out income protection.  A good sound investment strategy carefully planned out with a Simply Wealth Investment Advisor will address and mitigate any risks associated with each particular type of investment. The one thing you must be aware of is to do nothing and just sit back and watch the parade go by.

Remember, if you do nothing, one thing is for sure, you will have nothing. And that in our view is the greatest risk of all.

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