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.

  • Why your retirement intentions are critical

    Have you given much thought to the age that you might eventually retire?

  • Plans for study into elder abuse

    The government’s decision to follow one of the recommendations from the Australian Law Reform Commissioner’s report and adopt a national plan for elder abuse has been welcomed by a legal body.

  • Our website is really our digital office.

    Coming to our digital office means you can visit us at any time without moving, you family and friends can to. You can drop off and pick up files, you can catch up with important news, you can ask us questions on a wide range of topics, you can search providers such as Centrelink, the ATO and ASIC and often more easily than going to their sites, you can access a range of calculators, you can get to know our staff, and more. Drop in anytime!

  • Dissecting the downsizer contribution

    The 2017 federal budget included an allowance for a new type of superannuation contribution for individuals looking to downsize their principal residence. Michael Hallinan details the rules around these unique contributions.

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.