Determining Your Risks and Goals

Updated 8 months ago

This finance basic is some of the most important aspects of your financial life and benefits from monitoring, even if you have already pretty set on your answers. How to you determine risk? – There are several approaches. One is to ask yourself how would you feel if the value of your portfolio went down by 20%? By 40%? Are you a risk-taker by nature? In some financial respects are you conservative and then in others more aggressive? Do you prefer less volatility but are you willing to endure some for better gains than little volatility and little gain? To use multi-questioned risk test to try to be scientific in your planning do a general search online and type in ‘determine investment risk.’ Many links will be available that will help you guage with some objectivity your risk profile. Goals- One of the most difficult things about finance is balancing the needs of the future with the concerns and dreams of today and limited cash. If all your money goes towards paying down debt and you aren’t using the awesomeness of compounding to save for your future, I think that is not a great choice. But what about a new car, or buying a camp and saving for the kids and college? One way to figure out your goals is to break them down to short-term, intermediate-term and long-term goals. With compounding, a relatively small amount of money saved early can help you reach your long-term goals, so beginning very early is a big help. While you are doing that you can set aside money for the short-term goals and as you achieve them you can move into saving or working toward the intermediate goals. Budgets are limited. Pick the most important goals in the various time categories and address them first. Add more if you can. Revisit these basics, your risk tolerance and goals. Time moves. Life changes. As will your life situation. Marion Syversen, MBANorumbegaFinancial207.862.2952Marion@NorumbegaFinancial.com Check out our website that includes weekly streaming videosWWW.NorumbegaFinancial.com The information transmitted is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. If you received this in error, please contact the sender and delete the material from any computer. Email management, archiving & monitoring technology powered by Smarsh, Inc. Disclosure:Only securities and advisory services offered through Wall Street Financial Group, Inc. Registered Investment Advisor. Member FINRA/SIPC. Wall Street Financial Group, Inc. and Norumbega Financial are separate entities, independently owned and operated. CR 9058


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