Broker Check

The Responsible Risk Myth

Many people do not fully understand the level of risk they are taking in their investment portfolio.  Investing is based on a risk/ reward outcome. A client’s financial situation must be fully analyzed before implementing the right strategy.

Complimentary Gap Analysis

Investors tend to believe they can achieve a certain level of return without the same potential loss. This is not usually true. It is important to educate clients on the variance of returns they could reasonably expect over a period of time. It sounds simple but often it is not explained.

Risk is a factor that exists in almost everything we do. Many professions survive because there is risk in life and in business. But in your Financial Plan, risk is actually one of the metrics around which your strategy for building and protecting wealth, as well as for ensuring that you can sustain your lifestyle, should be built.

When designing the proper plan for our clients, we look at their current financial situation, and we factor in the following critical dynamics:

  • Their Earning Power over the next 10+ years.
  • The Baseline Goal for achieving a net worth powerful enough to sustain their desired lifestyle.
  • The Requirements for Protection of their Assets.
  • The forecasted Taxation Exposure that they and their family will face as life advances.
  • The ratio of guaranteed compensation necessary to sustain their lifestyle in the event of life tragedy.