Investment Planning

Let’s talk about…Investing

As a general rule, we know that investing comes with a level of risk. But for many of us, understanding where to invest, how to invest and the level of risk we’re comfortable with are key issues.

The ‘Let’s talk about…’ series below explores the different types of investor, some of the risks and patterns in investing and the importance of diversification.


What type of investor am I?

Before you invest, you need to understand more about what sort of investor you are. We all want our returns to be as high as possible, but do you enjoy taking risks or will you lose sleep over a market downturn?

Why risk equals return?

The biggest risk in investing is not understanding risk. As a rule, the higher the investment risk, the higher the potential return. But remember, the higher the return, the greater the risk or volatility and the potential for loss.

What can happen when you chase returns?

Investors can fall into the trap of allocating their funds based on the recent outstanding performance of a particular investment or asset class. In the same way objects in the rear-view mirror appear closer than they really are, our perception of recent performance can be magnified out of proportion.

Stepping back into the market

They say ‘time in the market is more important than timing the market.’ In other words, your returns depend more on picking the right investments and giving them time to perform rather than picking the right times to buy and sell.

Sticking to the plan

In times of market volatility investors may become wary and consider heading towards safe havens, such as cash. But are you aware of the impact that missing the best performing days in the sharemarket can have on your return?

Retiring on your terms

The pattern in which returns are realised by investors, known as sequencing risk, can play a critical role in determining the ultimate value and long-term sustainability of your retirement savings.


What to do next

If you want us to help you with your investment planning contact us today.

Any advice contained in this [website/webpage] is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters. 

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Coffs Harbour Head Office

182 Pacific Highway,
Coffs Harbour NSW 2450

PO BOX 1564,
Coffs Harbour NSW 2450

Phone: 02 6652 6977

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