For investments that can change your world, it takes Aviva

The Cambridge Dictionary describes risk as "the possibility of something bad happening" . It's a definition that we're familiar with in day-to-day life. Indeed, most of us try to avoid risk where we can – things like wearing a helmet to ride a bike, checking for traffic before crossing the road.

But when we talk about risk in the context of investing, it's not necessarily something you can avoid.

As with many things in life, the more risk you take, the bigger your potential reward and loss.  Likewise, the less risk you take, the smaller your potential reward and loss.  

But all investments involve risk, even the lowest risk investment; cash, is not risk free. Ups and downs are a natural part of investing but when the graphs get spikey are you likely to stay composed or get nervous? Understanding how you feel about risk will help you select the right investment option with your financial broker. You’ll also need to weigh this up with your investment timeframe and your investment goals.

Your investment timeframe is how long you plan to invest your savings to meet your financial goals. All investments go up and down over time. But generally, the longer you invest, the more chance your investments have to ride the ups and downs of the market and make a return on your money. That's why investing for the long term (at least five years) is a good idea.

If you're a pension saver under 45, for example, you're in a strong position to invest for the long term and accept more risk. With c. 20 years before you retire, your investments in the early years of your retirement funding should have enough time to withstand any market dips.

Investing can take up as much or as little of your time as you’d like.  You can work with your Financial Broker to decide if you want our investment experts to manage your investment portfolio or if you want more control, choosing and managing your own portfolio with the help of your Financial Broker. Of course, with Aviva you can mix and match between the three different approaches.

The best option is the one that suits your investment timeframe, risk tolerance, circumstances and goals. A professional Financial Broker can help you develop an investment strategy to meet your needs, which could make a big difference to your investments over the long-term.