Considering Different Strategies
When I’m helping clients, I put my own situation and preferences aside, because your goals and feelings could be totally different to mine. But I do recommend to everyone that they don’t put all their ‘ice-cream in one freezer’. If you want to invest all your money in rotten apples, I’ll point out the financial pros and cons, including any tax breaks.
The aim is to strike another balance – between simplicity and carrying the risk of having everything in one place.
I also consider the cost of investing, and whether the ‘plain vanilla’ product or the ’57 varieties’ is best for you. It is a case of striking another balance - between cost and flexibility.
If your time-frame is long, your financial plans need to grow with you. It may be best to set things up appropriately now, even if the initial cost is a little higher.Your attitude to risk is a key factor in deciding which strategies are right for you. For example, if you have a young family, are you willing to take the risk of their facing financial difficulties if you should become unable to work, or die?
See 'Protecting the Family's Finances' for more information.
Risk is equally important when it comes to savings and investments.
See 'Building A Balanced Savings Portfolio' for more information on this subject.
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