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FACT VS. FICTION

Looking at some common misperceptions may make risk feel, well, less risky...
Even the most conservative investors need to take on some risk if they want to reach their goals. The key is understanding and respecting risk in terms of your time horizon. Let's take a look at some common misperceptions!
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FACT

While that's the classic definition, risk is more complex than that.. For example, there's the risk that inflation will eat away at the value of your investment, or your portfolio won't generate enough income. For most long-term investors, the biggest risk is not reaching their goals.

FACT

History shows us that’s just not true. Consider a hypothetical investment in the S&P 500 on Black Monday, October 19, 1987, when financial markets tumbled 20% in a single day. Someone who stayed invested for the next 10 years would have averaged a 16% annual return.* Of course, every market cycle is different and past results are no guarantee of future results. Rise Financial Group believes in keeping the sails up and staying the course. We will always build in a safety feature that allows your daily expenses to continue to be paid...

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FICTION

IT'S TOO RISKY TO INVEST WHEN THERE ARE MAJOR GEOPOLITICAL AND ECONOMIC CHALLENGES.

FICTION

RISK IS ALL ABOUT MARKET VOLATILITY.

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FACT

What’s changed direction is the market, not your investment goal, that is still the constant. Running away from risk could mean that you’ll miss all, or part of any market upturn. And more importantly, it could mean it will take you longer to reach your investment goal.

FICTION

WHEN A MARKET STARTS TO HEAD DOWN, YOU SHOULD IMMEDIATELY MOVE OUT OF YOUR AGGRESSIVE INESTMENTS

The Risk of Avoiding Risk

When markets decline, it can be tempting to pull your money out until things calm down. But that could be a mistake. Even if you sell early in a downturn, it’s impossible to know the right time to get back in.

The chart below compares the returns of a hypothetical investment of $1,000 in the S&P 500 from 2011 to 2021.* Investors who remained steadily invested would have seen their $1,000 investment almost quadruple in value, growing to $3,790. However, investors who missed 40 of the best days during that period could see their investment top out at $1,005 — 73% less.

The lesson: Focus on time in the market, not timing the market.
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DO YOU KNOW WHAT YOUR RISK TOLERANCE IS? ARE YOU TAKING ON TOO MUCH RISK?

If you would like to understand how much risk your current portfolio is exposed too, please click below to set up a time to take your personalized risk review, there is absolutely no cost or obligation to work with us, just click the button below for more info.

*The indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

Standard & Poor’s 500 Index is a market capitalization weighted index based on the average weighted results of approximately 500 widely held common stocks. Standard & Poor’s 500 Composite Index (“Index”) is a product of S&P Dow Jones Indices LLC and/or its affiliates. Copyright © 2022 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. 

Investments are not FDIC-insured, nor are they deposits of, or guaranteed by a bank, or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. Additional information can be obtained on any portfolio you are considering from Rise Financial Group.

FAX: (480) 409-7244

3303 E Baseline Rd #107  Gilbert, AZ 85234

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Disclosure: All written content on this site is for information purposes only. Opinions expressed herein are solely those of Rise Financial Group and our editorial staff. Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or  completeness. All information and ideas should be discussed in detail with your individual adviser prior to implementation. Insurance and Advisory services are offered by Rise Financial Group a Registered Investment Advisor in the States of Arizona, Minnesota, North Dakota, or where otherwise legally permitted.  The presence of this web site shall in no way be construed or interpreted as a solicitation to sell or offer to sell investment advisory services to any residents of any State other than the States of Arizona, Minnesota, North Dakota, or where otherwise legally permitted.  Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. Rise Financial Group does  not offer tax planning or legal services, but may provide references to accounting, tax services or legal providers.  You should always consult an attorney or tax professional regarding your specific legal or tax situation. Rise Financial Group is not engaged in the practice of law.  Hyperlinks on this website are provided as a convenience. We cannot be held responsible for information, services or products found on websites linked to ours.   Images and photographs are included for the sole purpose of visually enhancing the website. None of them are photographs of current or former clients. They should not be construed as an endorsement or testimonial from any of the persons in the photograph.

Neither Daniel Anderson nor Rise Financial Group are associated with, endorsed or employed by the Social Security Administration or any Government agency.

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