The Cost of Missed Opportunity in Investing | Strategic Financial Risk Taking

One of the biggest costs that you might have is the opportunity you didn’t take. So, how do you take calculated financial risks?

There are two types of risk: the ones that you take, and those you don’t take. You’ll need to employ some degree of risk to succeed financially, and I would argue that this is true for anything in life. When assessing financial risk, it’s important to understand the full impact of opportunity cost.

I have a client whom is being underpaid in their current career, in my opinion, and also not receiving a pension. I spoke with her about her hourly wage and lack of pension. One of her concerns was fear of change, or fear of the unknown; even though she is unhappy with her pay, she felt frozen by the “what ifs”.

It was important (not only for my client, but also for her family) to clearly understand the opportunity cost. It enabled her to make an informed decision and helped alleviate some of the stress of uncertainty.

There is opportunity in the unknown when you move past the fear and uncertainty. Because my client was able to work through her anxiety over change, she was able to do the necessary research and make an informed decision. She has decided to take a new opportunity elsewhere - she’s taking a calculated risk.

Remember to be strategic and calculated with financial risk taking in order to get the best return!

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About Anna Hilberry:
Anna graduated with a Bachelor of Commerce Degree in 2007. Anna became a licensed Sales Associate in 2008. In 2012 Anna became a licensed Investment Advisor. Anna has extensive experience in successful investment management with a wide breadth of product knowledge. She is currently an Associate Investment Advisor with The Hilberry Group and National Bank Financial.

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NOTE: National Bank Financial - Wealth Management (NBFWM) is a division of National Bank Financial Inc. (NBF), as well as a trademark owned by National Bank of Canada (NBC) that is used under license by NBF. NBF is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF), and is a wholly-owned subsidiary of NBC, a public company listed on the Toronto Stock Exchange (TSX: NA). The information contained herein has been prepared by Anna Hilberry, Associate Investment Advisor at NBF. The opinions expressed do not necessarily reflect those of NBF.

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