Investing is a lot like driving. Both are risky activities. To many of us, driving causes less anxiety because the risk seems to be under our control. But in fact, while investment risk can not always be eliminated - it can be controlled, just as the driver can adjust risk by changing behavior.
Like to drive fast? True, you may reach your destination sooner. But your arrival time is much less predictable. You get pulled over by a police officer. You may not reach your destination at all if you are in an accident and destroy your car. Still, many people like to drive fast, and are willing to accept the risk.
More cautious? As a slower driver, your arrival time is more predictable. True, you may still suffer an accident, but the damage will be much less if you are driving at a slower speed. It might take longer to reach your destination, but your arrival time is more predictable and you will be better able to relax and enjoy the journey.
Too Afraid to drive at all? There is a big difference between prudence and inaction. If you are too terrified to get behind the wheel at all, you may never reach your destination.
Investing is much the same. We understand that not everyone is comfortable with life in the fast lane. And frankly, there are many times, when the road ahead seems especially fraught with perils, neither are we!
We work with the “fast investor” to take all possible safety precautions.Just as fastening your seat belt will not delay your arrival time, so too a well diversified portfolio may reduce the risk of loss without necessarily reducing the rate of return on your investments.Even an aggressive investor (or driver) may consider it prudent to slow down when the road is rough and visibility is low. So go ahead, take risks, drive quickly – but let us help you take sensible precautions so you increase the odds of arriving at your destination with portfolio intact.
We work with the more cautious investor to make sure you are not taking more investment risk than you are comfortable with. Just as some cars that seem safe may have hidden dangers, so too some investment strategies that seem safe may subject the investor to unacceptable levels of risk. While there is always risk involved with investing (and driving), we will do our best to see that your investments get you where you need to go, safely, with as little unwanted excitement as possible!
And if you are too afraid to invest at all? Many people, having been burned by their past investment choices, are now afraid to invest at all. We understand the fear. We will look for ways to help you feel safe again by taking on no more risk than you can handle, just so that you can keep moving forward toward your destination!
So no matter what your risk tolerance, and what your life situation, we can work with you to develop an investment strategy that is custom tailored to achieve your goals. After all, your investment strategy does not stand on its own. It is but one important component of a well orchestrated financial plan. We love to talk about this stuff! So give us a call, schedule a free consultation. You have nothing to lose but a whole lot of stress!
Advisory services offered through Creative Financial Designs Inc., a Registered Investment Advisor. All securities offered through CFD Investments Inc., a registered broker/dealer member FINRA, SIPC, 2704 South Goyer, Kokomo IN 46902,(765)453-9600. Financial Pathways, LLC is not owned or controlled by the CFD companies.
