There is simply no way to avoid investment risk. Even cash held in a safe deposit box gradually loses its buying power as inflation eats away at its value. However, the fact that every investment contains risks doesn’t necessarily mean those risks affect every investor to the same degree.
Risk cannot be eliminated, but it can, to a degree, be controlled if you adopt various intelligent risk reduction strategies.
In today’s financial arena, many factors – possible changes in interest rates or tax laws, for example – can affect the performance of the investments in your portfolio. All investment alternatives, as well as certificates of deposit, purchased through your local bank or through a full-service investment firm, such as the one where I work, involve risks in times of uncertain inflation and fluctuating interest rates. However, conventional bank CDs, unlike investment securities, do not fluctuate in value, and offer insurance and a fixed rate of return.
To build a successful portfolio, it is important for investors to have a comprehensive financial plan designed with the help of a qualified investment professional. As a highly experienced Financial Advisor with Raymond James, I can help you develop a portfolio of diversified investments in tune with your overall objectives. I can also help you limit your investment risk to a level with which you are comfortable.
As a professional who regularly deals with clients’ life savings and future financial security, my hands-on experience and ongoing education are two of the most valuable assets I can offer my clients.
Please keep in mind that diversification and asset allocation do not ensure a profit or protect against a loss.