Free Guide To Investment Risk by Barry Davys
Are Your "Safe" Investments at Risk?
GUIDE TO INVESTMENT RISK -> Download Here!
Free Guide To Investment Risk by Barry Davys
Free Guide To Investment Risk by Barry Davys
When I am discussing with a client their financial future, one important aspect of the planning process is to identify how comfortable they are with risk.
However, it is often the case that people only think in terms of "Can my investment fall in value" and if yes "By how much?"
Both are very logical questions and part of the process of assessing risk.
However, this narrow view of risk can lead to unintended consequences. No risk is generally taken to mean putting the money in a bank account. Yet with a bank account there is inflation risk, counter-party risk, jurisdiction risk (especially for expats) and in some cases default risk.
Property is another investment that is viewed as low risk. And it is for some types of risk. Yet property is subject to liquidity risk and tax/governmental risk. I have been in Barcelona for 14 years and there are still a few houses in the Costa Brava that I saw for sale that are still on the market today. That is an extreme example of the illiquidity. I have highlighted tax risk as a particular risk for our times.
The support packages given by the Spanish and Catalan governments during the COVID-19 crisis have been good. However, we will have to repay the money that has been borrowed for this support. That will mean higher taxes and property is one asset that can be taxed easily. Think of IBI, wealth tax, purchase tax, capital gains tax, etc.
To help understand in broader terms risk, and therefore to make better choices, I have made available to the readers of Metropolitan our Spectrum Guide to Investment Risk. Written by a colleague of mine, Peter Brooke, it covers the risks for six different investments from bank accounts, property right through to precious metals. He explains what risks apply and those that do not apply to each investment. The guide also gives pointers on how to discuss investment risk.
Download your free copy, here: Spectrum Guide to Investment Risk
Barry Davys
Learn more about Barry Davys here.
Spectrum International Financial Advisers
Book your consultation:
Phone: +34 645 257 525
E-mail: Barry.Davys@Spectrum-IFA.com
Office Address: Passeig de Gràcia 63, 08008 Barcelona
