Education
Probability Of Risk
How do you know which stocks will make money and which stocks will lose money? Unfortunately, no one can predict the future. We believe that the key is to devise a long-term investment strategy and let your hard-earned money go to work for you while exhibiting patience. Of course, based on your financial goals and time horizons, your tolerance for, and ability to assume risk, must also be considered. While some investments are certainly less risky than others, none are risk free.
Most people understand that investments in stocks or mutual funds can be risky. Stocks are priced in the open market; their prices are volatile - they can go up (appreciate) or down (depreciate) daily. Market Risk is just the possibility that the value of your investment may go down. But risk can take many other forms. What about Purchasing Power (or Inflation) Risk and Tax Risk? We believe that the key to long-term investment success is Risk Management - balancing Market Risk against Purchasing Power and Tax Risk.
In choosing an investment strategy to help you meet your long-term financial goals, we recommend that you choose an investment mix that balances your risk tolerance with other factors such as your financial situation, need for liquidity, and tax considerations.
Contact your NYLIFE Securities Registered Representative or local General Office today.
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