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"F" Word

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You should commit yourself to use the "F" word more in 2022.  I use the "F" word A Lot when talking to clients about the stock market.  When investing in the stock market, you must be "FEARLESS." 

Why, what "F" word were you thinking of...? 

Gone are the days when an advisor sits across from you, after filling out a boring risk tolerance questionnaire, telling you that your portfolio should consist of 70% stocks or 60% stocks.  What does that actually mean?  How much risk are you actually taking? 70% and 60% stocks are just arbitrary numbers. 

There is such a thing as more risky equities than others.  More risky bonds than others.  As a consumer of investments, you NEED to know how much risk is in your portfolio so you can decide if you're comfortable with the volatility that will ensue.  Again, you have to be fearless when you invest in the stock market, but where's your threshold for the downside risk. 

These days, technology can help you answer these questions.  There's a software I've been using for my clients called RiskAlyze.  It's something totally different than any other software I've used for the investment space.  With RiskAlyze I can visually measure my clients risk and have a conversation around how much volatility we're introducing into the portfolio.  With a click of a mouse, we can reallocate the portfolio to increase / decrease desired risk until the client feels comfortable with the volatility.  Light years ahead of what I (as well as most advisors now) used to do.  Now, both the client and myself have much more confidence in the risk being taken in the portfolio.    

How much risk are you willing to take?  How much risk and volatility is currently in your portfolio?  You NEED to know these things!  

Click on the link below (might have to copy / paste) to find out what your Risk Number is....


S&A Financial Services, Inc. is a registered investment adviser.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.  Investments involve risk and, unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

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