The real key to making a solid, long-term, inflation-beating return isn’t in taking big risks. Actually, it’s primarily fueled by eliminating potential losses. Protecting against loss is so vitally important because when your portfolio experiences losses, your growth years may only work to get you back to where you began. You can keep your wealth in a bank account to avoid that risk, but with today’s rates, you’re actually losing ground to inflation.
Hear Brian Bowen discuss this further in a recent TV segment:
So how do you find that balance between risk and reward? There are products that, while offering slightly lower yields, reduce your downside risk to no more than zero. In the volatile market of today, there is still a way to share in the upside without taking the free-fall that often comes with it.
Many of our clients are shocked to learn of the risk they are currently taking for the reward they may receive. Those risks don’t just apply to brokerage accounts; they are just as prevalent in 401(k)’s and IRA’s. If you have mutual funds, it can be tricky to know what your risk really is.
Contact us BEFORE the next market downturn at 540-266-3100 to have one of our Financial Advisors complete a Morningstar report that will reveal the potential risk in your portfolio.