What Kind of Investor Are You?

No two investors are alike – we all have our own goals, investment timeframes and risk appetites. That’s why your financial adviser works with you one-on-one to understand your personal investment style and make sure your portfolio is the right match.

Ups and downs in the market are a natural part of the investment cycle, but they can affect everyone’s emotions differently. Just as every person is unique, we all respond in our own way when things don’t go according to plan.

So how do you react to market volatility – do you panic at the first sign of uncertainty or do you stay confident even when the markets fall?

For example, when the Dow Jones Index fell dramatically in February this year, sending shockwaves through investment markets around the world, some concerned investors considered selling up to avoid further losses – while others remained calm throughout the fluctuations.

But it’s easier to maintain confidence during periods of volatility if you have a portfolio that matches your appetite for risk. That’s where Jason Cook, Financial Adviser, plays a vital role. At the beginning of the advice journey he will ask a series of questions designed to find out what kind of investor you are so that he can allocate your assets appropriately.

What are your goals and timeframes?

In your first meeting with Jason, he will ask you about your financial goals and investment horizon. Each goal may have a different timeframe – and even its own risk profile – and this can play a big part in shaping your overall strategy.

Jason will make sure that your investments support a combination of short, medium and long-term goals – from those you want to achieve in the next few years right up to your plans for decades into the future. They help you work out a specific timeframe for each goal, so you have an idea of how much your investments will need to grow during that period.

For example, you might be aiming to save for a house deposit in the next 12 months. Or else, you might want to focus on growing a healthy nest egg so you can retire in 10 years. As you move closer towards each objective, your investment horizon shortens and your financial adviser updates your investment strategy to match. That’s why your annual reviews are so important – they’re an opportunity to check that you’re on track to reach your investment goals.

How much risk are you willing to take on?

Before tailoring your investment portfolio, Jason will have already completed a personal risk profile, to make sure you’re comfortable with the level of risk you’re taking on.

In general, the higher the risk, the greater the potential returns you can earn over time. But before you can reap the rewards of high-growth investments, you’ll need to ride out any short-term fluctuations in the market.

Broadly speaking, investors can be grouped into three categories:

  • Conservative investors tend to prioritise stability over capital growth. They want low-risk assets that will provide a steady income stream, even during periods of market volatility. A conservative portfolio will therefore be weighted towards defensive assets like cash, bonds and term deposits.
  • Balanced investors are willing to take on some risk in return for moderate capital growth. Their portfolios may include a mix of growth and defensive assets, so they can generate some income while also enabling their capital to increase.
  • Growth investors are confident about having a higher risk exposure so they can maximise their capital growth over the long term. Their portfolios are likely to include a high proportion of Australian and international shares, which may each experience greater short-term volatility.

Your risk appetite is likely to change as you move through different life stages. While you’re young, you may be in a better position to pursue a high-growth strategy as you have more time on your side to cope with market fluctuations.

When you have your Progress Meeting, Jason will ask you about any changes to your circumstances that may have impacted on your appetite for risk – and will then tweak your portfolio where necessary.

As you approach retirement, it might make sense to switch to a more conservative portfolio, with the guidance of Jason. They can shape a strategy to protect your capital while creating a stable income stream for your golden years.

How do you react to volatility?

By their very nature, markets constantly go up and down.

There are many factors that can cause these market movements, such as global trade, consumer spending and confidence, political events and even natural disasters. In times of volatility, however, it’s understandable that some investors may feel nervous about the potential impacts on their wealth.

How do you react to volatility?

By their very nature, markets constantly go up and down.

There are many factors that can cause these market movements, such as global trade, consumer spending and confidence, political events and even natural disasters. In times of volatility, however, it’s understandable that some investors may feel nervous about the potential impacts on their wealth.

When completing your risk profile, Jason has considered how well you’re prepared to handle the highs and lows of the market cycle so you’re not taking on unnecessary risk. And don’t forget that, even though share markets regularly fluctuate, they tend to move upwards over time – which is why a long-term view is essential.

That’s why you should always think of your investment plan as a marathon, not a sprint and remain focused on how you are tracking towards achieving your financial goals.

If you have any concerns about how your investments are progressing, Jason should be your first port-of-call before making any major decisions.

Jason can revisit your financial strategy to make sure it’s still appropriate for your situation and goals.

How often do you speak to Jason Cook, Financial Adviser?

Your financial plan is just the beginning of your journey – and Jason is there to guide you along the way. But that’s why it’s important to keep Jason in the loop about what’s happening in your life and get in touch right away when things change.

To give your investments the greatest chance of success, it’s important to keep the lines of communication open.

So it’s worth asking yourself if your goals have changed since the last time you talked to Jason – and checking whether your plan is up to date.

Remember, Jason is on hand when you need to speak to him. By letting Jason know about changes to your circumstances or goals, he’ll be able to adjust your strategy and make sure your assets are suited to your investment objectives.

That way, you can be confident that your money is working as hard as it can for you, so you can stay on track towards achieving your goals.

Get the right advice

Before making any major decisions about your super, it’s important to check in with Jason Cook, Financial Adviser. Jason can review your overall financial strategy to make sure you’re on track towards reaching your retirement goals.

Jason Cook, Financial Adviser, WB Financial

Authorised Representative of Financial Wisdom Limited

Phone 07 3391 7199 or email enquiries.presidio@wb.com.au.


General Information. This content is not advice and provides information only. It does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and consider talking to Jason Cook, Financial Adviser, before making an investment decision. Presidio Financial Services Pty Ltd ABN 67 118 833 168 trading as WB Financial, its officers, employees, agents and associates believe in good faith that this information is correct at the time of compilation but do not warrant the accuracy or currency of the information and material. You should carefully check the date of compilation of the information and material (where relevant) to determine its accuracy. This market update has been prepared by Financial Wisdom Limited ABN 70 006 646 108, AFSL 231138, (Financial Wisdom) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. While care has been taken in the preparation of this information, no liability is accepted by Financial Wisdom, its related entities, agents and employees for any loss arising from reliance on this information.


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