Investment is an important part of wealth management. In Part I, we introduced four out of the Eight "Don'ts" of Wealth Management. Here, we have the remaining four "Don'ts" for you.

Don't be too aggressive or conservative
The different attitudes of retirees regarding wealth management are generally polarised into two categories. First, there is the intensively-studious category, which can often lead to retirees taking risks that are too high for their investment portfolio. The second is the conservative group, investors who are so cautious with their capital, that it only brings in low interest returns, resulting in their capital being steadily eroded by inflation. Risks are greatly increased if you are too aggressive, and capital can depreciate significantly if you are too conservative. So try more analysis and plan an investment portfolio that is most suitable for your needs.

Don't be overly eager to make quick money
When overly eager to make quick money, many people in Hong Kong tend to invest with only the stock codes in mind  without looking into the fundamentals. Retirees are no exception. They often forget to consider what risks they can manage, and confuse the "willingness to take risks" with the "ability to take risks". The result is that, like hermit crabs, they are burdened with bad investments. Therefore, assess your risk tolerance levels and plan your portfolio accordingly. 

Don't tie your money up
The Chinese traditionally tend to purchase property as an investment tool, and even go so far as to hold real estate as their biggest asset. The problem with this strategy is that it ignores the importance of liquidity. Generally property has lower liquidity than stocks and funds. As retirees often face reduced incomes after retirement, it is easy to experience cashflow problems if unexpected financial needs arise.

Avoid the "herd" mentality
From time to time, major investment institutions hold talks on different investment products. Among their potential investors, retirees are a major customer as they often have plenty of time to kill. Although it is important to keep abreast of information on wealth management, make sure you evaluate the actual content and risks associated with a particular investment tool carefully. Never blindly follow a trend in the heat of the moment.

For a quality retirement, please remember your risk tolerance levels and investment goals, and plan the most suitable portfolio for you.

Continuous reading：
The Eight "Don'ts" of Wealth Management (Part 1)