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Three questions to ask yourself before investing

I am a pensioner and have approximately $25,000 to invest. What do you suggest?

Prior to considering any investment, it is important to look at your personal situation and your attitudes and concerns as an investor. You should ask yourself the following questions:

  • First, consider your investment timeframe. Do you have a use for the $25,000 within the next three years or would it be desirable for the income from the investment to supplement the pension over time without touching the capital value?
  • Second, consider your attitudes as an investor. Do you wish to preserve the capital value at all costs or would you be comfortable with some exposure to growth assets such as shares or property? They may provide a higher return over the long term, but the value of your investment may fall. So, what percentage fall would you accept for a higher return?
  • Third, do you understand the characteristics and risk of the assets you are considering investing in? I recommend fully understanding both the risks and fees involved before investing.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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Published on: Wednesday, November 17, 2010

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