8-What is risk?
Understand the level of risk where you can sleep well at night.
Risk is defined in financial terms as the chance that an outcome or investment's actual gains will differ from an expected outcome or return. Risk includes the possibility of losing some or all of an original investment.
Many investors don’t truly understand the types of risks in their portfolios. As your partner in building your wealth, we want you to be informed. Your portfolio’s return should be commensurate with the risk. Investors sometime find out that they are taking more risk than they are being compensated for.
You and your family knowing the risk/reward level inherent in your portfolio is a key goal of us working with you. We use a disciplined portfolio management process where each step assesses if risk can be further reduced. This technique also enables us to match the unique risk profile of every person that will benefit from the plan in the future.
Understanding your risk tolerance is our main objective - it drives every portfolio management decision.
