Myers Capital Management

Refocusing Your Future

Refocusing Your Future

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Your Risk Profile

In order to make money over time, one needs to assume at least some risk. The more risk a person takes, the more potential there is for greater return. But also along with that comes the risk of loss in the shorter term. One should only take as much risk as they can withstand without getting to the point of feeling investments must be sold when they have declined. This could cause significant harm.

To help in this assessment, click Your Risk Profile and answer the five questions.

PLEASE, PLEASE, PLEASE, before answering each specific question, read the information and view the charts that pertains to that question below…

Question 1… These are typical ranges of returns one should expect to experience most the time and not the best and the worst each risk profile could be. There are outliers on the upside and downside. The risk profile all the way on the right is a 100% stock portfolio, and as you go left there is progressive less in stocks. For the 100% stock portfolio, the chart below shows that there are rate of return outliers on the left (larger than typical losses) and right column (larger than typical gains), and you can also see that there are significantly many more years that stocks are up than down and that therefore by being willing to take more risk there is the potential of making more in your portfolio. But you must be comfortable with the typical ranges of returns.

Question 2… This takes out the one year timeframe and looks at maximum declines, including infrequent outliers. Whether 2020 when stocks were down over 30% in a few weeks or November 2007 through early March 2009 when stocks were down over 55% (the worst decline since the Great Depression), how much loss could you experience before you felt you had to take your money out of stocks, even if you were counselled that it was not wise to do so? Below you see the example of two investors, one who did not sell, the green line, and one, the orange line, who sold stocks in in early 2009 because they could not tolerate the size of the market decline and then got back into the market later. The green line investor ended up with much more. This question is to help devise a portfolio that would hopefully not reach the point where you would become the orange line investor. If you would not sell no matter what if counselled not to sell, for this question choose the answer all the way to the right.

Question 3… This is less about your expertise and more about your feelings toward the stock market, so don’t worry if you don’t know for sure what the market will do.

Question 5… Please note that there has to be a definitive plan to take out at least 1/3 of your portfolio for something OTHER THAN retirement spending for you to put any other answer than NEVER.

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Schedule Introductory Meeting

The Myers Cap Post

  • How Secure Is Social Security?
  • Unemployment Lowers In June
  • Fed’s Economic Outlook Lessens, Interest Rates Stay The Same
  • Israel-Iran Conflict, Oil, And The Economy/Markets
  • Monthly Inflation Lower, Annual Inflation Higher in May
  • Jobs Created In May, Unemployment Holds Steady
  • Climbing the Wall of Worry
  • Retirement Planning and Life Expectancy
  • Shifting Trade Winds
  • May Consumer Confidence Nears All Time Low… What Does This Mean For Stocks?
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Location & Office Hours

(215) 657-0300

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WARRANTIES & DISCLAIMERS :
There are no warranties implied.
Myers Capital Management, Inc. (“MCMI”) is a registered investment adviser located in Abington, PA. MCMI’s website is limited to disseminating general information about its advisory services and access to additional investment-related information, publications, and links. Accordingly, the publication of MCMI’s website on the Internet should not be construed by any consumer or prospective client as MCMI’s general solicitation to effect or attempt to effect transactions in securities or the rendering of personalized investment advice for compensation. We do not collect personally identifiable information about you when you visit our website unless you voluntarily provide it by sending us an email or other electronic communication(s). If you choose to share with us personal information, we will retain it in our electronic communications archive. Any subsequent, direct communication by MCMI with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. MCMI does not take any responsibility, representations, or warranties regarding the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, including website links. All such information is provided solely for convenience, guidance, and informational purposes only, and all users should be guided accordingly. Investments involve risk and, unless otherwise stated, are not guaranteed. This website and information are not intended to provide investment, tax, or legal advice and no warranties are implied. Before implementing any strategy, consult with a qualified financial adviser and/or tax professional. Insurance products and services are offered and sold through Myers Capital Management, Inc., and individually licensed and appointed insurance agents. For information about MCMI, please refer to the SEC’s investment adviser public information website at www.adviserinfo.sec.gov or upon written request from Myers Capital Management, Inc. No product or service is offered or will be sold in any jurisdiction in which such offer or solicitation, purchase, or sale would be unlawful under the securities laws of such jurisdiction. This web site is intended to be made available only to individuals in the United States, and the information on the web site is only for such persons. • Copyright Myers Capital Management, Inc.
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