Are you a risk-taker?
Station Financial in New Milton considers appetites for and attitudes to risk
The second in our new financial series from Station Financial, this month's article begins with risk taking taken to the extreme as a backdrop to assessing our own attitudes to risk: one of the key factors determining our decisions about how to make our money work for us.
According to Bear Grylls, “If you risk nothing you gain nothing” - but know thyself!
"Whether you’re a fan or not, you will no doubt agree that Bear Grylls is a risk-taker!
He loves adventure and always seems to be caught in some wilderness somewhere in the world using his well-honed survival techniques to get by. He has even started taking people with him on these little adventures. Barak Obama was brave enough to join him in Alaska!
Word on the street is that Bear has struck a deal to form a new adventure TV production firm so that we can enjoy more of these survivalist shows, which have become so popular.
It’s always enthralling isn’t it, to watch other people take risks and undertake daring feats of human endurance to overcome obstacles? However, when it comes to our own attitude to risk, we may sit on a different place on the scale to the likes of Bear Grylls!
Life is a risky business
Most spheres of life include an element of risk.
It feels risky to climb Mount Everest or explore the jungle. It also feels risky to fall in love, to chase your goal or to put all your ‘metaphorical’ eggs in one basket.
Some people dare to win, others shy away – what seems risky to one may feel like child’s play to another, we are all different after all. It is good to consider our own attitude to risk, so that we make decisions that are right for us and cause the least level of stress and anxiety.
Money is a massive part of life and can actually be one of the things that causes the highest level of stress and anxiety. It’s one of the most talked about topics in the Bible, people will do many things to acquire it, some people have lots while others have very little, you can be reckless, stingy or generous with it. We need to talk about it in an authentic and real way!
We’d love to talk
As you probably guessed this all relates to our own attitudes to risk!
At Station Financial we are experts in talking about and taking care of your money - making it work for you, whatever your appetite for risk.
Attitude to risk is subjective and can be influenced by many factors – personality, recent experiences, current events – one person may feel comfortable with market risk, another may really not.
So one of the first things we do is assess your attitude by asking you to fill out a short questionnaire.
Saving and investing can feel like a big decision. There is inflation risk (your money may not keep up), volatility risk (share prices rise and fall), interest-rate risk (your money may have earned better returns elsewhere) and lastly, default risk (the institution in which you hold your money may fall).
The best way to manage risk if your appetite for it is low is to spread your money across a range of different investment types. As mentioned earlier, having all your eggs in one basket is for the high risk-takers!
Choosing the right products
We’ll discuss with you both your short-term and long-term goals to see where your money would be best placed. For short-term goals, such as buying a house, we would likely recommend cash products whereas for a longer-term goal you may want to consider stocks and shares which, while riskier, offer the opportunity of higher returns down the line.
If you would like some help to figure things out, then we would love to chat with you and outline the best strategy for you and your money, whether you need to play safe at the moment or have the scope to take a risk!"
Book your free initial consultation with Station Financial today!
As well as being experts in all things money related, the people at Station Financial are exceptionally friendly and helpful.
Your first port of call whether you call in or call by phone, will be with Gill Hepburn. After a brief chat Gill will know exactly which of the Station Financial team of Independent Financial Advisers will be most suited to discuss your situation and financial goals. Gill will then book you in for your completely free consultation - which can take place either at the Station Financial offices or at your home or office, as you prefer.