Understanding The Risks And Rewards Of NDIS Investments
Understanding The Risks And Rewards Of NDIS Investments
If you’re not familiar with the National Disability Insurance Scheme (NDIS), it’s a government-funded program that provides support to people with disability in Australia. One way that people with disability, their families, and providers can access NDIS funding is through investments. In this article, we’ll explore the risks and rewards of NDIS investments and provide tips on how to make informed investment decisions. Understanding the risks and rewards of NDIS investments follows below.
The Risks of NDIS Investments
Like any investment, NDIS investments come with risks. It’s important to be aware of these risks to decide whether an NDIS investment is right for you.
Financial risk
One risk to consider is financial risk. This refers to the risk of losing some or all of the money you invest. Financial risk can come in many forms, such as changes in market conditions, business failure, or changes in government policy.
To mitigate financial risk, it’s important to do thorough research on any potential NDIS investments. This includes understanding the financial health of the business or organization you’re investing in and the market conditions and regulatory environment in which they operate. It’s also a good idea to seek professional advice from a financial advisor or NDIS planner. Diversification, or spreading your investments across different types, can also help reduce financial risk.
Service delivery risk
Another risk to consider is service delivery risk. This refers to the risk that the service or product provided through the NDIS investment may be delivered differently than expected. This could be due to various factors, such as changes in staff, business operations, or issues with quality or safety.
To mitigate service delivery risk, carefully research the provider you’re considering investing with. Look for reviews or testimonials from other clients, and consider visiting the provider in person to see their operations firsthand.
Regulatory risk
Finally, regulatory risk is another risk to consider regarding NDIS investments. This refers to the risk that changes in laws, regulations, or policies could impact the viability of an investment.
To mitigate regulatory risk, it’s important to stay updated on changes to NDIS policies and regulations. You can do this by regularly checking the NDIS website and following news and updates from relevant industry organizations. It’s also a good idea to seek professional advice from an NDIS planner or legal professional to help you understand the regulatory environment.
The rewards of NDIS investments
Now that we’ve covered some of the risks of NDIS investments let’s talk about the rewards. There are many potential benefits to making NDIS investments, both for the individual with a disability and for society.
Improving the lives of people with a disability
One of the most obvious benefits of NDIS investments is the opportunity to improve the lives of people with disability. By investing in services or products that support the goals and needs of people with disability, you can help them live more independent, fulfilling lives.
For example, imagine a young person with a disability interested in pursuing a career in the arts. An NDIS investment in an assistive technology device, such as speech-to-text software, could help them communicate more effectively and pursue their passion. Or, consider a family struggling to make their home accessible for a loved one with a disability.
Financial return
In addition to the social and personal benefits, NDIS investments can also offer a financial return. While there are no guarantees when it comes to investing, successful NDIS investments can generate income or capital gains. This can be particularly useful for people with disability and their families, who may be looking for ways to supplement their income or save for the future.
It’s important to note that the financial return on NDIS investments may take time, and there may be periods where the investment does not perform as expected. As with any investment, it’s important to carefully consider the potential risks and rewards and seek professional advice before deciding.
Contributing to a more inclusive and accessible society
Finally, NDIS investments can contribute to a more inclusive and accessible society. By investing in services or products that support people with disability, you can help to break down barriers and promote equality. This can include investments in assistive technology, accessible transportation, or inclusive education and employment programs.
For example, imagine a small business owner looking to hire people with disability. An NDIS investment in training and support services could help them create a more inclusive and diverse workplace.
Making informed decisions about NDIS investments:
A few key things to consider when deciding whether an NDIS investment is right for you.
Seek professional advice
First and foremost, it’s a good idea to seek professional advice before making an NDIS investment. This can be from an NDIS planner, financial advisor, or legal professional. They can help you understand an investment’s potential risks and rewards and provide guidance on how to make an informed decision.
Understand your risk tolerance
It’s also important to understand your risk tolerance regarding NDIS investments. Some people are comfortable with a higher level of risk, while others prefer a more conservative approach. There’s no right or wrong answer regarding risk tolerance – it’s a personal decision that depends on your circumstances and goals.
Thoroughly research potential investments
Finally, thoroughly research any potential NDIS investments before making a decision. This includes understanding the financial health of the business or organization you’re investing in and the market conditions and regulatory environment in which they operate. It’s also a good idea to seek reviews or testimonials from other clients.
Conclusion
In conclusion, NDIS investments can offer a range of benefits, including improving the lives of people with disability, the potential for financial return, and the chance to contribute to a more inclusive and accessible society. However, it’s important to be aware of the risks involved, including financial, service delivery, and regulatory risks. By seeking professional advice, understanding your risk tolerance, and thoroughly researching potential investments, you can make informed decisions about whether an NDIS investment is right for you.
Featured photo by Marcus Aurelius by Pexels
