Risks exists in any investment you make. Whether an investment with a bank, the share market, property or business . The risk of an investment is
based on two simple principles: how much understanding and control you have over your investment. In other words if you do not understand what you are doing and you have less control because your money is with other people who make decisions for you then the risk can be quite high. The following tool can be used to assess risk based on a promised rate of return on a specific class of investment like property or shares:
Calculating Risk v Return
Use the following risk return calculator to assess if your investment is risky.
The key issues you need to address:
- Really successful people take calculated risks, reflect and learn from their failures
- Ego or ignorance generally leads to failure, the opposite can be true but you need to be careful
- You need a plan in order to mitigate any significant issues important to you. How and when you deal with these issues is what matters most.
To answer these questions, you need to ask what is it you need to do. This may mean modifying your needs and wants so they are more realistically aligned to your financial capability or change your financial capability.
For Ideas to improve the returns and managing your practice Read on…
Chartered Accountant, Chartered Tax Adviser, Registered Tax Agent, Former AGPAL Surveyor 10 years of service
David Dahm is CEO and founder of the national medical and healthcare chartered accounting firm Health and Life and global Founder and CEO of the not for profit project the International Healthcare Standards and Ethics Board (www.ihseb.org)
After a serious work related car accident in 1989, and nine operations later I continue to be a patient and provider advocate. I enter my third decade as a national Chartered Accountant for Medical and Healthcare practices in Australia. I am a former 10-year Australian General Practice Accreditation surveyor. I come from a medico family. I have served on the AAPM national Board and was the inaugural national Chair of the Certified Practice Manager CPM post nominal. I continue to provide accounting tax and practice management advice to many practices all over Australia.
You know who you are and I thank you for this real honour and privilege to serve you and your community through you. Note, I am not a lawyer please seek appropriate legal and accounting advice. This information is for general information and discussion only.