Real Risk Management
Risk is theoretical until you face a loss. Then it becomes real. And it can become permanent.
When markets are good, investors believe they have a higher tolerance to risk. But after markets fall they get conservative. This means you can lose money. And you may not have a chance to make it back.
This isn’t unusual….it’s simply human nature. It happens over and over again.
How many of your family and friends actually made money during the dot com era? Most people thought they had made a lot of money. But then the bubble burst and they lost a lot. And it may have been over 12 years later before they made it back (if they didn’t panic and sell during the Financial Crisis).
This means risk management may be the most important thing we do. Most financial advisors get you to fill out a risk tolerance questionnaire (out of a legal obligation – their firm makes them). But then they file it away.
At Global View Investment Advisors, we view risk management as a serious ongoing responsibility:
- We make sure we have a valid assessment of your risk tolerance
- We make sure we know your capacity to bear risk (and what this means to your odds of achieving your goal)
- We talk to you about risk on a regular basis
- We build modeling into your financial plan so you can get a better idea of what risk will look like to you in real terms
- We help you evaluate risk across all your holdings, not just the ones we manage
This is all preventative. So you don’t overinvest when things are frothy.
Or sell out in panic at the bottom, because you had too much tied up in that asset.
So you don’t lose money you can’t make back.
It has to be done, since we’re fighting human nature. But we’ll keep you on the right side of your emotions, so your wealth lasts.
Helping You Prioritize Right
When you’re busy living your life, it’s hard to always make the right financial decisions. But the right financial decisions, made regularly and consistently, is what builds lasting wealth.
- Because it’s not just about you.
- It’s about your future quality of life and happiness.
- It’s about preserving your wealth for your kids. And their kids.
- Now that you’ve got serious money, you don’t want to lose what you can’t make back.
That’s why we’re here. And we will be here when your needs change. Which they will (we’ve done this before).
Real Advice, Not Sales
Bull markets are big business on Wall Street. But real investing for serious money is far less exciting.
It means that no, you won’t get Bitcoin and Blockchain-like returns of thousands of percent. That can be gone again the next day, and we’ve seen that happen.
Instead, we help you consistently achieve the returns the market offers, in a diversified, disciplined way. Which is far more than most investors ever get due to the Investor Gap, as explained in MarketWatch’s October 21, 2017 article. Additionally, it is believed by Financial Planning that market perceptions can influence investment decision and subsequently impact returns.
Most importantly, we help you avoid the big losses many investors experience. Because you don’t want to lose money you can’t make back.
Most advisors benefit when clients swing for the fences. Not surprisingly, because they’re not investing alongside you. They have no skin in the game. You may lose or you may win, but they make money regardless.
At Global View, we don’t agree with that approach. We’re real advisors. It means we grow our earnings by making you more money. And by keeping it. And we’ve got skin in the game, so we’re invested alongside you.