Steam locomotive still holds speed record
Change does not always mean better so follow these ideas before changing your investments.
05:37 06 July 2013
There are times when we might wonder if there really is a necessity to change technology or something we’re currently doing just for the sake of change. For example the fastest locomotive was a steam locomotive, most of which were phased out in the 1960’s. The speed record still stands unbeaten today. When it comes to finances, the same principle may apply. If you’re currently earning a lot of interest on an investment you might be wondering if you should change things up just in case you can get a better return, or whether you should leave them as they are and avoid a potential risk.
There isn’t a right answer to the question, and for people with investments it’s all about their comfort level with their personal finances. Here are a few suggestions for deciding what to do with your investments.
- Decide comfort—if you’re new to investing, decide what the risks are and how comfortable you are with potentially losing your entire investment. That will be the worst case scenario. If that won’t set your finances back too much, you could probably take on riskier investments as long as you feel comfortable with it.
- Retirement—before you make a decision about your investments that could negatively impact your finances consider the estimated time you have before retirement. You most likely have a financial goal for retirement. If you are over your goal you might be fine with risking a little of your investment, but you’ll probably want something more balanced such as an almost guaranteed return and a smaller high-risk investment.
- Involvement—another thing to consider is whether or not you want to be actively involved in your investments, or if you prefer to hire a professional to manage an investment portfolio. Trained individuals might make you feel less anxious about the potential state of your finances.