Page 5 - SFHN March 2018

Financial Health

for Healthcare Professionals

into conservative investments isn't at
much risk of losing their money. But they
Managing Risk
may be at risk of running out of money
PROVIDED BY HOWARD WOLKOWITZ, A FINANCIAL • What can you afford to lose? when they retire because they weren't
REPRESENTATIVE WITH COASTAL WEALTH, Another key consideration is how much able to accumulate enough to keep up
COURTESY OF MASSACHUSETTS MUTUAL LIFE investable money you have available with inflation.
INSURANCE COMPANY (MASSMUTUAL) after identifying your goals and obliga- A reliable way to manage risk is to
tions, and how much you can afford to choose a strategy and stick with it. This is
“The greater the risk, the greater the reward.” It’s a lose. as much a matter of managing your emo-
statement we've all heard referenced in many areas • What is your emotional ability to tions as picking an asset allocation strate-
throughout our lives. Taking on more risk with your handle risk? Some people can’t handle gy that’s in line with your investment pro-
investments may increase your likelihood of higher the ups and downs of the markets and, file. Learning as much as you can about
returns, but you may also experience the downs of the therefore, are better off choosing a more Howard Wolkowitz different investments and strategies defi-
investment markets, including the risk of losing some conservative portfolio. nitely helps. If you’re just getting started,
or all of your investment. Can your proverbial stomach Investors need to be savvy, always balancing the risks read up on the basics like 401(k)s and Individual
take that? they are taking with the possible rewards — and avoid- Retirement Accounts. If you’re closer to retirement, you
ing investments that are beyond their understanding or may want to learn how you can shift your investment
Balancing Risks individual tolerance for market volatility. mix and convert your assets into income. Either way,
There are many different kinds of risk. One of those enjoy the ride.
is market risk. That’s the chance the value of an invest- Investing for the Long Term
ment will go down, not up, causing you to lose money. When investing for long-term goals, it is important to For more information, please contact Howard Wolkowitz
The second is the possibility that you may not earn be prudent and stay focused on the long view. Prices of at HWolkowitz@mycoastalwealth.com or (954) 558-3673.
enough on your investments to keep up with inflation. stocks and bonds can go up and down, sometimes wild-
And a third common risk is the chance your invest- ly. But if you’re thinking in terms of years and not days, Provided by Howard Wolkowitz, a financial representative
ments won’t grow enough to get you to your longer- the short-term peaks and valleys won’t seem so large. with Coastal Wealth, courtesy of Massachusetts Mutual Life
term goals, such as retirement. A prudent investor helps manage risk by diversifying Insurance Company (MassMutual). Securities and investment
— spreading money among different kinds of invest- advisory services offered through qualified registered repre-
Understanding Your Risk Tolerance ments that are not correlated to each other. Of course, sentatives of MML Investors Services, LLC. Member SIPC.
There are a number of factors that can help determine diversification cannot guarantee a profit or protect your [www.SIPC.org] OSJ: 2400 E Commercial Blvd., 11th Floor,
your risk tolerance: portfolio from losses. Fort Lauderdale, FL 33308. (800)320-4180. CRN201909-
• What is your time frame? The length of time 218703
remaining for you to reach your goal matters when it Not Too Much but Not Too Little, Either
comes to how much risk you can handle in your port- It can actually be risky to take too little risk. A person FY1088
folio. in their 20s, who puts all of their retirement savings CRN201809-205095

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