Reduce Investment Risk

Covers topics – reduce risk while building wealth, factors that reduce investment risk, how to manage risk while building wealth, how much of your net worth should be in cash, portfolio cash allocation

How Much to Keep in Money Market Accounts | 15 Factors 

No one wants to run out of cash. By cash, I mean that super safe stash you keep in a money market account that won’t fluctuate in value the way stocks do.   But just how much should you keep in a money market account? It depends on some personal things like your investments, portfolio allocation, dependents, …

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Predictors of Bear Markets

Updated: November 15, 2019 One of the biggest dangers for soon to be retirees and recently retired folks are bear markets. We saw this in the first 2000 decade when stock returns were negative for the 10 year period, something no one had planned for in retirement.   Yet we know stock markets build wealth over time and that bear markets …

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How to Prepare for Bear Markets | 11 Steps [Video, Chart]

Bear markets are a fact of life for stock market investors but they don’t have to be detrimental to your net worth.   After investing through several bear markets, both alone and with financial advisors, I’ll share how to prepare for bear markets.    While I’m an AFC® (Accredited Financial Counselor), I write from my own investing experience of 40 …

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How to Manage Risk in the Stock Market

Managing risk in the stock market becomes more important than ever after age 50. We all learned this from the “lost decade” when the stock market (S&P 500 index) had an annualized negative return of 2.72% (excluding dividends) in the first 2000 decade.   If you’re wondering how to manage risk in the stock market, being aware of your risk, …

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Are Stocks Safe for Retirement? 8 Important Factors 

Every time I hear someone confidently tell me that they are invested in “safe stocks” so they’re not concerned about a “stock market crash,” I silently shudder.  Are stocks safe for retirement? It all depends on your risk tolerance, net worth, stock market valuations and other factors explained below.   After investing for almost 40 years …

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Reducing Risk in Stocks | 13 Lessons from Past Bear Markets

After surviving a few bear markets over the past 40 years as an investor, I’ve learned many lessons from them.   Reducing risk in stocks before bear markets take full hold helps investors protect their net worth as well as have capital to invest in stocks again once unusually low valuations are reached.  This sounds almost too obvious to write, but most investors don’t take …

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Stocks That Went Up in 2008 | Plus ETFs, Bonds, Gold

Toward the end of bull markets, it’s smart to see what stocks went up in past bear markets for recession proof investment ideas. Stocks that went up in 2008 include Dollar Tree, Amgen, Hasbro, Dwight & Church, Celgene, Gilead, Walmart, McDonald’s, Ross Stores, Budweiser, AutoZone and H&R Block. Stocks going up while the market is …

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What Are the Risks of Bonds? Chart Stocks Vs Bonds

  Updated August 8, 2019 Investing in bonds definitely has risks, contrary to what many investors think. Just what are the risk of bond investments? They include interest rate risk, default risk, inflation risk, call risk and economic risk. The fact that bonds are used to offset risk from stocks, and the very long bull …

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Risks of Income Investing

Income investing comes with both risks and rewards, just like all investments. The risks of income investing in bonds includes interest rate risk, default risk, inflation risk and more. And for stock income investors, there is bear market risk and political risk. Both bond and stock income investors face company or entity specific risk and …

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How to Know If the Stock Market Will Go Up or Down

The closer you get to retirement, the more important it becomes to avoid nasty, major stock market moves down, and capture those lucrative stock market moves up. But maybe you’re wondering how to know if the stock market will go up or down over the next few years with a higher degree of likelihood? While it …

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How Will a Stock Market Crash Affect You? [Infographic + Video]

Investing in the stock market can be unsettling, especially after stock prices have climbed sky high. At any given time, I ask myself “How will a stock market crash affect me?” To get a very reasonable estimate for how much my net worth will decline in the next stock market crash I do this simple …

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How Much Of My Net Worth Should Be in Cash (Liquid Net Worth, Cash Percentage)

Updated May 29, 2019 Deciding how much of your net worth to keep in cash is a huge part of managing risk while building wealth. The simple formula to figure how much of your net worth should be in cash is the amount you need to cover all your monthly expenses multiplied by the number …

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10 Ways to Reduce Investment Risk While Building Wealth

Updated 5-28-19 Do you worry about losing your money? Here are 10 ways to reduce investment risk so you can sleep better at night while still journeying toward your financial goals. While it may seem like you have to be an advanced investor to lower risk, these practical ways to lower investment risk are simple …

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woman cash cartoon | what percentage of cash should be in my portfolio

What Percentage of Cash Should Be in My Portfolio?

Article Updated August 7, 2019 Should your investment portfolio have 90% in stock and bonds and 10% in cash? Or should it have 60% in stocks and bonds and 40% in cash? The most common recommendation for the cash allocation in a portfolio is simply to use the percentage from a standard asset allocation model …

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