Investment Risk
photo credit: lumaxart
As entrepreneurs, many are proud to say that they are some what of a risk taker, however in a down economy and when your talking about your hard earned money, one tends to be a little protective and more conservative with good reason. Even high stake investors started pulling out of the stock market when it hit it’s low in five years in October.
The truth is that no investment of any kind is 100 percent safe. The first thing you need to do is assess your tolerance level. If you are young, single with no family to rely on you, you probably have more room for risk where as someone with a family does not. The more risk you have, the less money you should invest.
You need a plan that will ensure it sees you through the good and bad times of your investment as suggested on Entrepreneur.com. Figure out how much money you are willing to loose if the market should go south on you. What amount is acceptable for you to still swallow?
So before you make a decision you’ll regret, consult with an investment advisor about your long- and short-term financial objectives and create a plan that provides the potential for capital appreciation and income generation but also lets you sleep at night.
What risk’s are you willing to take with investing?
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