Investments

Investments can be in form of cash (eg: your bank account) through to shares, with a myriad of investment types and ways to invest to be considered.

One of the key influences on how we invest is the potential for risk. The meaning of risk can vary. For some it may mean the possibility of losing a portion of their investment due to market movements or a poor decision. For others it may mean not enough income is produced from the investment. Another measure of risk is the variability of returns over time known as volatility. Generally, risk can be viewed as the chance of failure in achieving objectives or goals.

Risk and return are closely related. In general, the higher the degree of risk associated with an investment, the higher the return required by investors to accept this risk. Low risk investments such as cash offer relatively low returns as a reflection of their greater security. This is called the risk/return trade-off.

Understanding your attitude to risk can help you establish where you should invest. The make up of your investments (how much cash, how much in shares) is referred to as Asset Allocation. Asset Allocation will have the largest impact on how your investments perform over time.

Investment strategy exists in most of our financial decisions and is therefore key component of any financial plan.

  • COVID-19 resources -Update July 2020

    Several new links have been added to the many already in this article, links that date back to the beginning of the COVID-19 pandemic. If you have any questions, or require further assistance, please send us an email or phone.

  • 'But how will we pay for this?'

    It's a natural question about global policymakers' multitrillion-dollar efforts to prop up economies and markets against the monumental threat of the COVID-19 pandemic. And the question has understandably taken a back seat to confronting immediate health and welfare challenges.

  • SMSFs urged to review leases before granting rent relief

    SMSF clients planning to provide rent reductions to tenants should review the lease agreement to ensure the provision of rent relief won’t result in a breach of the lease, says an industry lawyer.

  • New financial year to bring new rules for super

    As the 2019–20 financial year draws to a close, a technical expert has highlighted some of the new rules commencing for super funds for the 2020–21 financial year.

IT Financial Services, ABN 48 097 884 976, is an Authorised Representative of Apogee Financial Planning. Apogee Financial Planning Limited ABN 28 056 426 932 is an Australian Financial Services Licensee and has its registered office at 105 - 153 Miller Street North Sydney NSW 2060. A member of the National group of companies.