Although investing involves risk, there are ways to manage it.

Types of risk

Although investing involves risk, there are ways to manage it.

First, you need to know the types of risk you may encounter:

 

  • Basic Business Risk – The company whose stocks or bonds your fund has purchased may experience bad fortune or even go out of business, in which case you may lose part or all of your investment.
  • Inflation Risk – The increase in the cost of living has an effect on your savings. Unless the return on your investment is above the rate of inflation where you live, you are not increasing the buying power of your assets.
  • Investment Risk – With the opportunities for higher returns comes greater risk – more fluctuations in the value of your investment or, in some cases, the chance that you may lose some or all of your savings.
  • Market Risk – Changes in the market may cause your units to have less value when you sell them. The stock market is influenced by many factors, including expectations about the economy and the fortunes of individual companies. The major market risk to bonds is interest rate risk, which is created by expectations of an increase or decrease in interest rates and inflation.
  • Retirement Risk – It is possible that you won’t have enough money to retire, or that your savings will not be enough to see you through the rest of your life when you finish working.

If you would like to find out more about Moore Stephens Retirement Solutions, please contact us, fill out our enquiry form or call on +44 (0)1624 697240

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CONTACT

BRIAN BODELL
Managing Director

brian.bodell@msrs.im
+44 (0)1624 697240
Skype: brian.bodell.msiom

Contact Us

If you want to find out more about our retirement plans, please contact us, email at clientsupport@msrs.im, or call on +44 (0)1624 697240


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