When ever you invest money it is important that we understand how you feel towards investing: asset classes (cash, equities, property, small companies), different markets (Australian, International) and risk (conservative up to aggressive). It is also important to know what your time frame is, at what life stage you are at, and the goals you are trying to achieve. All of this will have an impact on the type of investments you should be considering or holding.
As such, we require all of our clients to do the following:
- View the following documents or watch the video;
- Read the information about the documents;
- Print the following Risk Profile and complete it. You may require a phone meeting with an adviser to help you complete it. If so, please book in an appointment time for the advisor to give you a call back. Book a time via our calendar link here: https://calendly.com/findgroup/15-minute-phone-conversation
STEP 1: WATCH THE VIDEO AND REVIEW THE DOCUMENTS BELOW:
Link to VIDEO
Return Vs Risk : The Higher the returns = higher the risk of those investments have a negative performance in a given year.
Historically investments have grown but it is not smooth sailing.
Best performing assets in a given year.
Which of the following asset class profiles would suit you best when considering the benchmarks of asset types that would be included in your portfolio?
STEP 2: READ THE FOLLOWING:
Risk is closely associated to return, with the highest potential returns usually associated with higher-risk investments. When investing it is important to strike a balance between the risks you’re willing and able to take, and the kind of return you’re looking to achieve.
What is risk?
In simple terms, investment risk is the potential for the return on an investment to be less than you expected – this encompasses losing all or some of your original capital, as well as making less profit than expected.
Different investments are exposed to different types of risks, with the more common including:
The above is not a comprehensive summary of all potential risks involved in an investment, and it’s important to investigate the potential risks involved in any asset before you make an investment decision.
Ways to Manage Risk
In order to earn a return on investing, you must take on risk. Savvy investors look to strike a comfortable balance between risk and the returns they are looking to achieve, managing their portfolio in a way that minimises the chance their portfolio will lose value. Some ways you can manage investment risk within your portfolio:
Understand the Market
Education is important when your young and when you are older. No one is too old to learn – we are not ‘old dogs’. Find an adviser who is willing to teach you about your investments rather than sell you a product.
Understand that investments will go up and down. Investing, whether it be in property or shares, is never a safe bet. However, with appropriate advice you can begin to mitigate some of the risks of doing so.
If you are unsure of how to best structure your investment portfolio, and manage investment risk, you could look to a professional adviser for guidance on an appropriate asset allocation.
STEP 3: DOWNLOAD THE RISK PROFILE & FILL IT IN.
IMPORTANT: Make sure you download the document and save it to your desktop or a folder on your desktop before you start to fill it in. If not sure then press ‘SAVE AS’ and save it somewhere before starting.
Steps to download and complete Risk Profile:
- Download the Risk Profile by clicking on the image above. It will download into your download folder. Save it or move it to your desktop. Then fill it in.
- Once Filled in then email the filled in document to our office at firstname.lastname@example.org.
- When we receive the Risk Profile and confirm it is filled in correctly we will email you the last page to sign.
- You have two ways to sign the pages. You can print, sign and then re-scan the pages. Alternatively, we will place the signed pages on SignEasy for you to sign via the online program (no printing or scanning).
- If you decide to print the last page to sign then please email the page back to us.