What type of investor are you?

How do you know how much risk is appropriate for you to take on?

As each investor is slightly different, there is never going to be a definitive right or wrong answer to this question.  We all have different financial goals and risk tolerances, so our mix of investments will all be slightly different. One big question to ask yourself is “when do I need to spend this investment?” as, the sooner you need to spend it, the less risk you can afford.

If you are just starting out in life you might be prepared to take on higher risk investments as you have more time to weather the ups and downs of the markets.  If you are saving for your first home, a holiday, or sending kids to university, you might be less prepared to take on those higher risk investments. 

If you’re wondering what investment mix is right for you, the SBS Wealth Risk Profile Questionnaire is a great tool to help you figure out what mix of higher and lower risk assets might be right for you.

- The Team at SBS Wealth