Some investors think they can avoid investment risk while seeking financial independence.
People appreciate the stock market’s long-term average annual return of more than 10%. Even bonds have earned a long-term average of more than 5%. The problem is most people do not have the stomach to “ride the waves” along the way from day today or even year to year.
The minute a person invests money, they subject themselves to risk: the risk of loss, the risk of inflation, and the risk of volatility.
How do people try to avoid risk?
Is there a solution?
Do doctors practice medicine on themselves? Of course not. Neither should you.
Remember the saying: The attorney who represents himself has a fool for a client.
In like manner, the person who thinks they can invest their own money without any help may be disappointed. Get professional advice from a fiduciary that puts your interest first.
For more insight, listen to Jentner Wealth Management’s weekly podcast by clicking here. Or download Jentner’s white papers on The Four Cornerstones of Prudent Investing and The Active Versus Passive Investing Debate.