INVESTING and RISK

Everyone talks about how much you can make,

but does your advisor talk about how much you can lose?

IF YOU WERE TO DIVIDE YOUR INVESTMENT DOLLARS INTO THREE GROUPS, HOW MUCH WOULD YOU PUT INTO EACH BUCKET?

  • BUCKET 1: If you could obtain a 3-5% rate of return with no risk of loss, how much money would you put in this investment bucket?

 

  • BUCKET 2: If you could obtain a 5-7% rate of return with lower risk investments, meaning strategies that have a 10-year maximum drawdown of less than 15%, how much would you put in this investment bucket?

 

  • BUCKET 3: If you could obtain 8-10% rate of return with higher risk investments, meaning strategies that have a 10-year maximum drawdown of 15-30%, how much money would you put in this investment bucket?

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