Greetings! I trust that this will find you well and enjoying life.


More confusion resulting from the federal governments’ actions caused big gains and losses in the markets last week. That’s beginning to sound all too familiar isn’t it!

The final segment in our three part series on the decision making process we use with our clients at Armor, focuses on the element that risk has on an investment decision. Risk isn’t inherently bad. What’s bad is when exposure to risk occurs inappropriately. For persons that can afford to take risk and are comfortable with risk, on certain investments the potential for gain is greater because of calculated risk undertaken. The problem that I often observe when I meet new people and examine their portfolios, is that they are exposing themselves to risk that they can’t afford to take on and to risk that they don’t understand.

When you are depending on your assets for retirement income, an important way to reduce risk is through diversification of asset types. Diversity between assets that have an underlying guarantee as well as assets that are portfolio based and have growth potential. You can diversify in these basic asset types of fixed rate and growth as well, by using different vendors or sources to manage the assets. You may achieve risk reduction by owning both of these asset types, because if you have sufficient money to access for a reasonable period of time in a fixed rate asset, should you experience a downturn in your portfolio based assets, you can give them time to recover while using fixed assets. In other words, avoiding fire selling assets at an inappropriate time. It’s not rocket science, just discipline.

Understanding risk and your true tolerance for it is imperative to gaining confidence about your finances in retirement. If you have further questions about risk or concerns about it call us and let’s work toward helping you gain peace of mind.

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