TALKING FINANCE with Justin Baiocchi of Baiocchi Griffin Private Wealth Dream time As you age, one of the cruel realisations in life is that you're unlikely to live up to your dreams. It can and does happen, of course - some people do go on to be famous sports stars, musicians, actors, artists or even politicians (well, maybe not politicians; hands up all of you who dreamt of being your local member for parliament...not many I bet). While there's nothing wrong with having a dream or an ambition, at some point you do have to accept that it's just not going to happen, that your life may achieve no greater heights than perhaps captaining your local footy team or being made team leader on a project at work. Nobody likes to have their dreams cruelly crushed of course, so it can be tricky when you are dealing with your children and their somewhat overly ambitious plans in life. Jack, our eldest, has plans to be a professional soccer player, which is a problem as I'm not sure he's even the best soccer player in our family, never mind his local club, state or country. Just like life sometimes doesn't quite live up to your expectations, the same can be said of investing. As investors, of course we all want to make 20% returns every year - who wouldn't? And with no risk too naturally - losses are not part of the plan. Unfortunately, that's just not how it works. Just like life, investing is full of uncertainty and in some years you are almost as likely to lose money as to make it. Does that mean it's not worth doing and the best place for your savings is in the bank? Not at all (although there are certain situations where the best place for your money is the bank, but not if you are looking to grow or even maintain your wealth). However, your return expectations need to match reality. We often see investors who want high returns, but start questioning the plan and the process when both markets and their investments fall in value. Usually, it's at the worst time too, that some investors lose faith and act to sell out, thereby crystalising their losses and perhaps confirming to themselves that it's just gambling'. It sounds simplistic, but I like to describe investing as 'two steps forward and one step back'. Once you become comfortable with this idea (and perhaps that you're never going to play soccer for Australia), investing (and life) becomes much more tolerable. BAIOCCHI GRIFFIN PRIVATE WEALTH Level 1, 462-464 Peel St, Tamworth NSW 2340 6766 9000 AFSL No 424658 This article is general in nature and does not take your individual situation into account. You are advised not to act on anything contained herein, or discussed as a consequence of the contents of this document, without receiving financial advice from a suitably qualified person such as a financial planner, lawyer or accountant. Follow us on Twitter @BaiocchiGriffin Find us on f Facebook facebook.com/BaiocchiGriffin Private Wealth www.bgprivatewealth.com.au AW7447696 TALKING FINANCE with Justin Baiocchi of Baiocchi Griffin Private Wealth Dream time As you age , one of the cruel realisations in life is that you're unlikely to live up to your dreams . It can and does happen , of course - some people do go on to be famous sports stars , musicians , actors , artists or even politicians ( well , maybe not politicians ; hands up all of you who dreamt of being your local member for parliament ... not many I bet ) . While there's nothing wrong with having a dream or an ambition , at some point you do have to accept that it's just not going to happen , that your life may achieve no greater heights than perhaps captaining your local footy team or being made team leader on a project at work . Nobody likes to have their dreams cruelly crushed of course , so it can be tricky when you are dealing with your children and their somewhat overly ambitious plans in life . Jack , our eldest , has plans to be a professional soccer player , which is a problem as I'm not sure he's even the best soccer player in our family , never mind his local club , state or country . Just like life sometimes doesn't quite live up to your expectations , the same can be said of investing . As investors , of course we all want to make 20 % returns every year - who wouldn't ? And with no risk too naturally - losses are not part of the plan . Unfortunately , that's just not how it works . Just like life , investing is full of uncertainty and in some years you are almost as likely to lose money as to make it . Does that mean it's not worth doing and the best place for your savings is in the bank ? Not at all ( although there are certain situations where the best place for your money is the bank , but not if you are looking to grow or even maintain your wealth ) . However , your return expectations need to match reality . We often see investors who want high returns , but start questioning the plan and the process when both markets and their investments fall in value . Usually , it's at the worst time too , that some investors lose faith and act to sell out , thereby crystalising their losses and perhaps confirming to themselves that it's just gambling ' . It sounds simplistic , but I like to describe investing as ' two steps forward and one step back ' . Once you become comfortable with this idea ( and perhaps that you're never going to play soccer for Australia ) , investing ( and life ) becomes much more tolerable . BAIOCCHI GRIFFIN PRIVATE WEALTH Level 1 , 462-464 Peel St , Tamworth NSW 2340 6766 9000 AFSL No 424658 This article is general in nature and does not take your individual situation into account . You are advised not to act on anything contained herein , or discussed as a consequence of the contents of this document , without receiving financial advice from a suitably qualified person such as a financial planner , lawyer or accountant . Follow us on Twitter @BaiocchiGriffin Find us on f Facebook facebook.com/BaiocchiGriffin Private Wealth www.bgprivatewealth.com.au AW7447696