Make 2019 the year you learn to understand and manage your risk tolerance.
The beginning of a new year is an ideal time to evaluate your investment portfolio. Make time these first few weeks of 2019 to first review your long-term goals, which can be anything from finally tackling debt or building your emergency fund to stashing away money for retirement.
One of the basic premises of investing is that investors attempt to maximize the returns from their investments. In doing so, it is assumed that investors are risk averse, that is, given a choice between two assets of equal rate of return, an investor will select the asset with the lower level of risk. Although this relationship does not imply that all investors are risk averse, it does mean that there is a positive relationship between expected return and expected risk. So how do we define risk? (more…)
Financial lingo can be a little convoluted, intricate and downright torturous. Often times we think we know what something means, when in reality we have no idea. We here at Investment Account Manager want to clear the air for you and make your experience with our software an easy and enjoyable one.