Let’s rap about risk. I have a zero-tolerance policy for risking my client’s money. Now, that doesn’t mean clients should never risk money. It just means any money my clients give me is not at risk in the financial markets. This wayward financial advice hinges on a financial concept called “risk capacity.” Risk capacity refers […]
The rollercoaster test
Whn I was a kid, my parnts would take me to this place called “Darien Lake”. It got bought out by 6 Flags a while ago, but I loved going there because it was an amusement park built on a freakin lake and also because I liked the rollercoasters. They even had an all wooden […]
Investment returns vs risk capacity
Cornerstone Investment Services put out a piece a while back that showed the average annual rate of return for the S&P 500 (THE stock market of stock markets) since 1871 is about 5.63% to 5.85%, depending on where you source the raw data from and how you interpret that data. MOAR: Vanguard has a report […]