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How to Manage Your Investment Risk

During the bull market in the late 1990s, confidence was high and everyone felt they were a wall-street professional.  When the bubble burst in March of 2000, an estimated four-trillion dollars of investors' net worth was lost by July of 2002.   It appeared that investors' common sense was inversely related to market gains.  Could these losses have been entirely avoided?  Perhaps not, but possibly dramatically reduced.  What went wrong and what can be gained from investors' misconception of investing?  Managing an investment portfolio should not be a gamble with decisions being emotionally motivated, but a calculated risk.  If one does not understand how to properly reduce portfolio risk, the assistance of a professional should be sought.  

The following module addresses unnecessary risks assumed by many investors and how a strategically diversified portfolio may reduce risk (volatility). We highly recommend reading each topic starting at the beginning.  (Continue to Next Page)

 

This module is available by email in a seven-page, printable version upon request: 

Request Module

(Continue to Next Page)

Topics covered:

Common Investment Mistakes or Poor Investment Decisions? (Start Here)

  1. Concentrated Positions
  2. Hot Tips
  3. IPOs: Initial Public Offerings
  4. Emotions
  5. Analyst Credibility
  6. Garbage In Means Garbage Out
  7. Buying an Unmanaged Index Fund

  8. Avoiding Unnecessary Taxes

  9. Procrastinating

Diversification vs. Asset Allocation-How to Manage Your Risk

  1. Types of Risk
  2. Blind Diversification vs. Strategic Diversification
  3. Asset Allocation

Why Can Investing Through a Bank or Other Savings Institution be a Poor Investment Decision?

Cash Flow Analysis

Bonds

Dollar Cost Averaging

Portfolio Management

Hope for the Best but Plan for the Worst

  1. Wills and Trusts
  2. Proper Insurance

Summary

  1. Suggestions
  2. Final thought

Continue to Next Page

This module is available by email in a seven-page, printable version upon request.  Contact ProActive Financial Planning to Request.

 

 

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