Kel Galavan

The stock market has risen 70% of the time, but when it rises, we don't necessarily pay attention to it.

We only ever really hear about it when it decides to take a nosedive for some reason.

And that's where we can associate it with being very, very scary.

But investing over the long term has by far and away outstripped savings ever.

nearly every single time.

Do you know what?

That's a really good example.

So we'll take a pension because that's something we do have and that we can understand.

When you go to get a pension, generally you will sit down with somebody and they will do something like a risk analysis and they'll figure out what your tolerance is.

And it usually goes kind of on a grade of like one to five or one to seven or something like that.

The higher number being you're okay with more risk and the lower the number, the more conservative you might be and the more you might want to protect your money.

And generally with something like a pension, and this should work something similarly because it's still investing.

If you're a very low risk person, some of your pension might be kept in cash, some might be kept in bonds and that kind of thing.

And a bit put into individual shares or funds or something like that.

If you are more risk tolerant and you're able to listen to the news and not have a panic attack altogether.

And you understand that if you leave it for the long term, you've got a better chance of return.

Well, then your pension advisor will most likely put you into a fund or a choice of funds that have more shares, more exposure to the market, more options where you could have growth.

But when you bring on the option of more growth, you are taking on more risk.

Got it.

Kel, what questions do you still have about it?