Focusing on What You Can Control: Understanding and Managing Risk

In this installment of our Investing Series: Focusing on What You Can Control, we address the aspect of risk – an unavoidable component of any investment journey. While risk cannot be eliminated entirely, it can be managed and tailored to align with individual preferences and objectives.

Understanding your risk profile is paramount to making informed investment decisions. Risk tolerance varies from investor to investor and depends on factors such as age, financial situation, and personal temperament. By conducting a thorough risk assessment, we can determine the appropriate level of risk exposure for each client's portfolio.

We believe in the importance of striking the right balance between risk and reward. While taking on too much risk can expose investors to undue volatility and potential losses, being too conservative may hinder long-term growth and wealth accumulation. By aligning risk preferences with investment goals, we can construct portfolios that offer a suitable level of risk-adjusted returns.

Moreover, risk management extends beyond asset allocation to encompass factors such as diversification, liquidity, and downside protection. By incorporating risk management strategies into our investment process, we aim to safeguard our clients' wealth and navigate uncertain market conditions effectively.

In conclusion, our investing philosophy centers around focusing on what we can control: asset allocation, diversification, asset valuations, time in the market, and managing risk. By adhering to these principles and remaining disciplined in our approach, we strive to help our clients achieve their long-term financial goals while navigating the complexities of the investment landscape.

If you are interested in having our team determine the appropriate level of risk for your portfolio, take our Risk Profile Questionnaire, found linked below and under our Questionnaires tab, found under Resources. This is a short assessment that allows us to better understand your personal risk tolerance from which we are able to form a tailored investment strategy.

Material discussed is meant for general informational purposes only and is not to be construed as a recommendation or advice. Please note that individual situations can vary therefore, the information should be relied upon only when coordinated with individual professional advice. All Investments contain risk and may lose value.

Gracio Garcia is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS) 160 Gould Street, Suite 310, Needham, MA  02494, (781) 449-4402. Securities products/services and advisory services are offered through PAS, a registered broker-dealer and investment advisor. Field Representative, The Guardian Life Insurance Company of America (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. The Bulfinch Group is not an affiliate or subsidiary of PAS or Guardian. Life insurance offered through The Bulfinch Group Insurance Agency, LLC, an affiliate of The Bulfinch Group, LLC. The Bulfinch Group, LLC is not licensed to sell insurance. The Bulfinch Group is not registered in any state or with the U.S. Securities and Exchange Commission as a Registered Investment Advisor. CA Insurance License #0K24081; FL Insurance License #P179788. PAS is a member FINRA, SIPC. 2024-171334 Exp 3/26