Managing Risk in your Investments.
Successful investing is based on managing risk – understanding what risk means and using it to your advantage. In a challenging economy, smart investment decisions can potentially increase your wealth significantly over time. Investments, however, also come with risks.
Risk refers to the change that an investment’s value or return will be lower than expected. Investments with potential for greater loss are viewed as riskier than those with a lesser chance of loss. However, the risks associated with investments differ in the long-term compared to the short-term. In the long-term, so called “risky” investments may offer a greater chance of reaching a financial objective.
The risk and return of any one investment should be viewed in relation to your total investment portfolio – the combination of investments you’re making. If you hold just one or two accounts, you are more exposed to risk than if your money is more widely diversified. Diversification means investing in instruments which behave differently during a given economic situation or time period.
It’s important to seek the guidance of a financial advisor to help determine an efficient balance between risk and reward potential, time horizon, and risk tolerance.
Our advisors will help you to:
- Set your investment goals
- Understand your risk tolerance
- Create an investment strategy
- Review and manage your portfolio
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Investments will fluctuate and when redeemed may be worth more or less than when originally invested. Neither diversification nor asset allocation guarantee against loss, they are methods used to manage risk.