The old adage that says you should hold your age in bonds (as a percentage of your overall portfolio allocation) may no longer be appropriate for today’s investor, especially in today’s economy. Don’t know what your risk tolerance is? Think about the following scenario. You are given a choice between two cars to take on a cross country vacation. Option 1 is a fast, attractive, high risk sports car with very bad crash ratings. Option 2 is a slower, unattractive, safe sedan with excellent crash ratings. Which do you choose and why?Consider another scenario in which you have the option to stay in one of two resort hotel rooms. Option 1 is a suite on the 25th floor with great panoramic ocean views. Option 2 is the same sized suite, but on the first floor with convenient emergency exits. Which do you choose and why?The amount of risk you are willing to assume for a chance at receiving a desired return can help you begin to design your overall investment portfolio. Among the various factors to consider when deciding on an appropriate allocation are: your proximity to retirement, how comfortable you are with investing, your other available income streams, liquidity needs, and your general comfort level with the financial markets.
Here at Elite Generators Inc, we take the majority of the risk out of it for you to help you become better suited for your short and long term goals. Schedule a Consultation with one of our expert professionals today. Appointments are filling up fast.
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