Invest in Your Comfort Zone

August 30, 2017

Have you ever wondered if there was a better way to evaluate risk?

Risk is one of the most important aspects of successful long-term investing, and it can be challenging to get it right.

You’ve probably taken too much risk at some point.

Some investors assume that they have to take substantial risks in order to build wealth, so they’ll try to gain too much from a single investment or make big bets on a few individual stocks. These investors can end up out of the market entirely after a sharp sell-off, however, and they typically buy back in at higher prices.

You may also know what it feels like to take too little risk and miss out on strong gains. If you steered clear of stocks after the 2007-2009 bear market, you forfeited years of terrific returns.

You may need to take some risk if you hope to maintain your quality of life in retirement and also leave something for your children, but how much risk is ‘right’ for you?

A true assessment of risk should answer these three essential questions:

1. How much risk can you tolerate?

2. How much risk do you need to take in order to reach your goals?

3. Are you invested in a way that’s consistent with your risk tolerance and your goals?

For years, investors have answered these questions generally: they think of themselves as conservative investors, so they invest primarily in bonds, for instance. They may not recognize that their bond portfolio may pose significant risks, including the risk that they may not generate enough of a return to meet their investment goals.

Get A More Detailed Analysis of Risk

Today, there’s new technology and decades of data that can give you a more detailed analysis of risk and help you come up with more accurate answers to these important questions.

These tools have helped investors reassess their true tolerance for risk and learn how they can change their portfolios to be more consistent with their risks and goals.

How to Find Your Comfort Zone

FundX portfolio managers can help you assess your risk tolerance and see if your current investments are compatible with your risk and your goals.

Here’s how it works:

– You’ll fill out an interactive questionnaire and get useful insights into your risk tolerance.

– We’ll review your current portfolio and show you how well your investments match your risk level.

– We’ll also determine if you’re invested in a way that could meet your financial goals.

Call 1-800-763-8639 and ask to speak to a portfolio manager. It doesn’t take long, and it can help you invest wisely and with confidence.

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