How much risk should you take?
When it comes to how much risk you should take, there’s no right answer. Only you know how much risk you’re comfortable taking.
If you’re a more cautious investor, or have a shorter time to save for your retirement, then you might think about spreading more of your money across cash and bonds, taking less exposure to shares. If you feel ‘balanced’ about risk, you might prefer to invest in a mix of things including property, bonds and shares. If you’re a more adventurous investor, or have longer to save for your retirement, you might consider investing more of your money in shares.
If you’re a hands-on investor, it’s important for you to check regularly to make sure the balance stays right for how you feel about risk. To give you an idea of your attitude to risk, you can use Royal London’s Risk Profiler
, which will ask you to answer 12 simple questions to work out whether you’re more cautious, balanced or adventurous.
If you’re adventurous today, you may not necessarily be adventurous in years to come. So as time moves on and your circumstances change, it’s a good idea to pop back to our risk questionnaire and reassess your risk profile.
Remember, all investments carry risk and you could get back less than you invest. However you feel about risk, it’s always good to speak to an impartial financial adviser. They can help you make the right decision to suit your individual circumstances.