Your comfort zone

Approaching risk from every angle helps you understand the tradeoffs

24 Sep 2019

Key takeaways

  • It’s not uncommon to be questioning the validity of your financial plan, amidst talk in the media of recession
  • We do not believe recent events are reason to make significant adjustments to your plan
  • Rash decisions in reaction to short-term disruptions can take years off of the longevity of your wealth

Market risk is usually defined by day-to-day volatility and drawdowns, but this gauge can obscure a holistic view.

Risk depends on other factors, too, such as time horizon. For example, cash and bonds are safer from short-term drawdowns than stocks, but far less likely to grow fast enough to significantly outpace inflation. This hurts your ability to finance higher spending needs over the long term.

Our Liquidity. Longevity. Legacy. framework helps to align your balance sheet with your financial goals. The result is a portfolio that can stay invested during difficult markets, maximize the probability of meeting lifetime expenses and allow for growth earmarked for the next generation.

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