Right time and place to take a risk and invest in your future

Working out investment options and what you are comfortable with

- By ELLA WALKER

When we talk about risk, it's usually to do with risky behaviour - driving without a seatbelt, leaving your front door wide open to thieves, climbing scaffolding while drunk. When it comes to money, most of us hear the word "risk" and think, "No, thank you, I've got no interest in risking - and losing - my life savings". But being financially risk averse can be a risk in itself.

Here James Bulman, director and financial planner at Smith & Pinching, explains what financial risk actually entails, how to find the right level of risk for you and what options there are when it comes to investing.

INVESTMENT V SAVINGS ACCOUNTS

For starters, James says people get confused by investments and savings accounts. On the one hand, you have the "asset allocation of a portfolio", and on the other, "savings and deposit-based accounts".

You can rack up savings in a tax-free cash ISA, junior ISA or in Premium Bonds, "but you'd more be using these as a wrapper for tax benefits, rather than necessarily calling that a low-risk investment", he explained.

The difference is, with an investment it could be volatile due to market conditions, whereas savings accounts are generally easy access or ways to protect your money against investment falls.

WHAT'S BEST FOR YOU

So what investment types are there?