Risk management is a key factor when planning for your retirement, but it’s confusing to many investors. What does standard deviation, beta or Sharpe ratio mean to your portfolio? How do you know if you’re taking too much risk with your nest egg—or not enough? The Dot Com Bubble of 2001 and the Credit Crisis of 2008 have made plenty of investors weary of traditional risk models.
“Past performance is no guarantee of future results.”
This is a common refrain in our industry. Why would it be any different for risk? Unfortunately, most brokerage firms use models that do just that. At Aegis Wealth Partners, LLC, we take a different approach. We don’t rely on historical risk-modelling like other firms. We use an institutional model that takes a forward-looking approach to help our clients understand specific risks in plain English. We listen to our clients and adjust their portfolio to truly reflect their risk comfort level. While it isn’t a crystal ball, we believe it provides a superior approach to addressing real life scenarios that can set investors back months or even years if they don’t plan accordingly.
Think of it in this manner: Just as the Insurance Institute for Highway Safety evaluates an automobile’s crashworthiness, we evaluate your portfolio by crash testing it through a number of economic scenarios.
To set a no-obligation appointment with Dave to walk you through the process, just click here to contact us to schedule a meeting.