Can investors secure more returns by losing less?

Watch Shawn Hirsch, Wealth Management Partner, explain how we manage risk and help keep clients on track to achieve their goals. Too many investors only focus on returns. Seeking to avoid significant declines is also important. Can investors secure more returns by losing less? Learn more below.

Understanding the importance of owning bonds

Now, you may be thinking to yourself; why would I own bonds? Aren’t they at lower interest rates versus 5 or 10 years ago? As Shawn explains, even with this evident in today’s current environment, bonds carry the ability to anchor returns when the rest of the market sells off. He states, “You can see how treasury bonds have done in 2020 and 2018. These are assets that are actually going up in value as the rest of the market goes down in value. This helps my clients sleep better at night, knowing that their assets are going up in value as the rest of the stock market goes down in value.”

Understanding your risk tolerance

Keeping the importance of owning bonds in mind, it is essential to also evaluate how much risk you are taking while investing your assets. The common notion that the more risk you take, the more you will be compensated for, has a few caveats. “While in general,” as Shawn elaborates, “someone who takes on more risk can see more returns. It is not always the case…. Someone who was 100% stock portfolio can return similar results to someone who was 50% stock.”

As you can see, as an investor, if you take better informed decisions, you may not even have to take more risk to make more returns. If you leverage the right assets in the stock market, with the right amount of low risk assets, you are able to take more control of your financial goals.

Overall, with a better grasp of your risks within your assets, you are in better control of meeting your own investment and retirement goals. To become a better informed investor, learn more with Signet Financial Management.

Signet Financial Management, LLC is a registered investment advisor with the U.S. Securities and Exchange Commission and serves as a fiduciary. Signet advisors will help you with:

  • Financial planning
  • Investment strategies
  • Tax planning
  • Retirement planning
  • Insurance planning
  • Estate planning

To protect and grow your wealth is our mission.

Want to talk to us?  Please contact us, Shawn Hirsch or to schedule a time to talk.

Want to learn more? Stay tuned into our insights for more articles, videos, and resources provided by our trusted professionals of Signet Financial Management. Investors can secure more returns and more, check out our other content.

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