Understanding Risk and Protecting Your Investments
Worried that as soon as you invest in something you’ll turn around only to hear, “And…it’s gone!” There’s risk in any investment, but it’s important to understand what kind of risk you are taking on when it comes to your money.
When the market is going up, it’s exciting to see your wealth grow. But when you invest in something that tanks, you might feel like your hard-earned money is gone immediately after you put money in. No one wants to hear: “And…it’s gone!” So, what do your accounts look like and how can you tell what’s worth investing in?
When choosing a fund with a lot of financial risk, ask: is it worth the risk? Especially if you’re later in life, you don’t have the time to make it up. Then after a significant financial loss, many people don’t want to take as much of a risk in the future. Are you afraid of losing everything?
Brian shares client fears, Ponzi schemes, and what kind of funds he chooses as an advisor for his clients. There are ways you can safeguard yourself against certain major losses, but always realize you will be subjecting yourself to some kind of risk.
Listen to the full episode or click on the timestamps below for more.
[0:16] – “And it’s gone…” lesson from tv show South Park.
[2:29] – People feel frustrated when their investments lose money.
[3:36] – What if you don’t have time to make the money up?
[5:14] – What funds does Brian use?
[6:58] – If it sounds too good to be true, you should have someone look at it.
“How do you Ponzi-proof your portfolio? Don’t put it with just a small company. Your money needs to be placed at a large custodian where there’s third-party accountability.”
Brian Bowen – Contact