You’ve been told “go big or go home,” and probably rolled our eyes at it once or twice. And while it can be fun when you’re on vacation and indulging in a night out, or on an adventure tour about to cliff dive, you might think it a little silly to use this phrase to navigate your financial future. How do you know if you’re playing it safe or playing it too safe in terms of investment opportunities? Are you being a wuss?
As humans, most of us find change a little hard to take. But is this fear of switching up the daily routine keeping you from making some really great investments or jumping on some amazing opportunities? Let’s say you’ve got a great job – it might not fulfill everything you hoped a job would, but you like the work and you’re compensated well. But then a new job comes along that would be a bit of a change. OMG! Change! The pay is the same, if not better, and you think in the long run you’d be happier, but you don’t jump at the chance to switch. This could be you playing it too safe, too wussy. No pain, no gain! You know what your Monday-Friday looks like in your current position, and you might not want to rock the boat, but I think this is the perfect time to look inside yourself and see if you’re wussing out on a great opportunity. (It could also be a great bargaining chip to increase your current compensation or counter the new job to receive more!).
Another example could be your friend who has had great instincts in predicting investments that pay off greatly. They were ahead of the curve with Apple or Spotify or Tesla. And now they’ve got another hunch about a new “sure thing.” It’s a product or company you’ve never heard of and you’re wary. Are you playing it safe or too safe? Are you going to wuss out again? This one is trickier to tell, and what I would recommend is doing some research, talking to your financial team, and listening to your gut. If you’re still unsure, come up with a number that wouldn’t hurt you if you lost, but could pay off big if your friend’s hunch is right.
Your financial planner should be able to help you see it and guide you. But at the end of the day, it’s your money and you have to feel good about where you’re putting your dollars. If you won’t be able to sleep because of the stress of the investment, I think it’s a good idea to walk away or at least talk it out in detail before just saying yes or no. Just don’t wuss out!
For more tips on how to make the most of your investment opportunities, visit tswealth.com.