Jul 20, 2016
Last week we talked about risk and how it relates to the timescale of your investments and the underlying volatility of the portfolio you build. Today I want to clear up, once and for all, some confusion about risk tolerance and risk capacity. This is essential to your investing success, so tune in…
This podcast is brought to you with the help of Seven Investment Management, a firm of investment managers based in London. They specialise in multi-asset investing, bringing institutional investing techniques to ordinary people like you and me. 7IM put their name to my show and to my site because they believe in what I’m doing, trying to get decent, easy-to-understand financial information out to the world. I’m very grateful to them for their support. You can see what they’re up to at 7im.co.uk
For novice investors, risk can sound exciting, because they have heard that rewards accompany risky investments. For those in later life, perhaps with some investing miles under their tyres, risk is something to be wary of, if not avoided entirely. There are two major factors you need to consider when thinking about the risk you should take with your investments, and that’s what I’m carefully going to go through with you today.
This might be the most important episode in this season, so pay close attention.
I love to read and respond to your comments, so please do join in and share.
Question: What was your risk tolerance? Were you surprised with the result of the test?
If this show is of any use to you, it would help me massively if you would take the time to leave me a review on iTunes. This has a huge impact on keeping me near the top of the rankings, which in turns helps more people to find the show and to subscribe. Just click the button below: