Leverage and Risk
When investing, it is important to get the right mix of equity to borrowings – Gearing or Borrowing can be a great friend or similarly it can also be the sword that fatally wounds you.
When considering risk factors, things such as age, income stream, taxation, attitude, other commitments, goals etc. all come into play. My philosophy is to always have a back door or a ‘plan b’ if circumstances go against you and things do not turn out as you planned.
We always recommend that you seek professional advice as this blog is for general information only