Balance Your Finances!

I hear a lot about “life balance.”

But what about your financial balance?

Take a look at the image of two tanks. Think about where you have the majority of your money situated.  Is it at risk for loss?  Or is it in a financial vehicle where it is protected from loss?

If you can prevent the loss of your original principal (or capital) in the first place, then you are not continually coming from behind to try and catch up.

While it may be a smart move to risk some of your money, that you can afford to lose for large returns, the unfortunate reality is that many people place into investments money that they cannot afford to lose.

For these individuals and their families, when the loss of investment capital does occur, the results can be financially and emotionally devastating.

Sometimes, especially when it comes to your financial situation, you may not even realize how much risk you are taking with your money until something unexpected happens.  Remember the stock market drops in 2001 and 2008?  Many people could not retire or had to come out of retirement because they had lost too much money.

Ask yourself:  “How much financial risk do I really have?”

Then ask yourself, “How much financial risk do I really need to take?

With the array of diverse financial tools available today and with a customized financial strategy that fits your unique situation, you never need to lose your retirement savings as many people did in 2001 and 2008.

By building a retirement plan that considers both investing for growth and saving for safety, you can create a worry-free retirement.