The Idea of Risk & Return
Is it possible that we have been thinking about risk & return our entire life incorrectly?
Higher risk equals higher return. Lower risk equals lower return.
Is it possible that we have been thinking about risk & return our entire life incorrectly?
Let me share with you an extreme example. For instance, what if somebody asked you to go to the top of a large building and jump off? Let’s think about the risk versus the reward in this situation. This is an extremely dangerous situation with a meager return.
As financial planners, we are trying to be good stewards of the capital you entrusted us to manage and advise upon. We make sure that we are taking your money and investing at a rate you are comfortable with. We are in the business of analyzing threats, so we want to know what you feel best doing before we invest. If you are more of a dare-devil, we will take a few more risks that could ultimately pay off. If you are feeling more conservative, we know how to create low-risk high-return investments.
With this mandate, we always try to steward capital towards highly profitable companies at fair valuations. We are in the business of finding a balance between being comfortable and stepping out of your comfort zone. We both understand how to make the best investments.
— Nic & Jeff
We are a full-service financial advisory company that allows you to make a one-page plan for your money and prepare for your future. Learn more about what we do and how we can help you here.
