Posted At : October 29, 2009 11:20 AM
Investors must consider all risks, not just the potential loss of principle in the event another serious decline occurs. Right now, the risk is being underinvested. We all know not to be afraid of the dark or to put on a coat on a cold day rather than avoid going outside, but few practice that with regards to their money. Right now many people are hiding in cash, which has the most risk as it guarantees a loss after inflation and taxes. If you are underinvested in stocks and the market keeps going up, you have significant risk. If you need to take a regular distribution from your portfolio for living expenses and your portfolio is not invested to generate those returns without principle, you’re in trouble. This list can go on and on, but the message is clear: removing the emotional aspect of managing your own money is nearly impossible. That’s why it is always recommended that investors be the expert or hire one that knows what they are doing. There are a number of high yielding opportunities available at present if you know where to look.
If you would like more information on our unique proprietary process for building successful tax advantaged portfolios, give us a call.
Regards -Keith Springer