Investment Strategies with Aileron

By: Bill and Cindi Porter, AILERON INVESTMENT ADVISORS

Q: How much risk is reasonable for my portfolio?

A: There are many different kinds of risk to consider and each should be assessed separately.

Risk of principal: Can part or all of the original investment be lost because of risk factors such as stock market and real estate setbacks? In your quest for higher returns, you should consider what percentage of your portfolio can you comfortably invest into assets which might incur a substantial reduction in value? Your emotional risk tolerance (not your friends or co-workers) must help guide you. Some people are comfortable with the roller coaster effect of risk taking but many are not. Are you?

Risk of losing purchasing power: If you have money in the bank earning 1% but inflation is 3%, your money is losing 2% of its purchasing power each year. How much of that kind of “safety” can you afford?

Risk of inconsistent liquidity: Stocks and mutual funds are usually liquid and available at all times, but always at ever changing values. If your account is down significantly when you need money, can you afford – or are you willing – to access funds that might only be obtained at a substantial loss? How many of your assets are liquid and accessible only if the market is up?

Risk of out-living your money: Americans are now living much longer, and at a time when the markets are very volatile and highly unpredictable. Many retirees have already run out of money and many more will follow. Without a plan, the possibility of such a nightmare is very real. Do you have a plan?

Risk of “money muddle”: An unplanned and uncoordinated portfolio may result in unintended consequences.

It is best to discuss “risk” with your trusted advisor before you invest.

This is for education only. Before using this information in any way discuss it with a financial professional. There are many risks associated with stock trading. You may lose some or all of your financial investment. Securities offered through Dempsey Lord Smith, LLC Member FINRA/SIPC. Securities offered through Integrated Financial Planning Member FINRA/SIPC. Advisory services offered through Dempsey Lord Smith, LLC. All the information in this letter is published in good faith and for general information purposes only. We do not make any warranties about the completeness, reliability and accuracy of this information. Any action you take upon the information is strictly at your own risk.

Send your investment questions to: submissions@SuwaneeMagazine.com.

All the information in this letter is published in good faith and for general information purposes only. We do not make any warranties about the completeness, reliability and accuracy of this information. Any action you take upon the information is strictly at your own risk.


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