As an Accredited Investment Fiduciary with over 30 years of experience as a Financial Advisor, and 30 years with First Allied Securities in Lake Tahoe. California Department of Insurance License # 0I54891
Nine Rules of Risk Management
1. There is no return without risk- Investments seeking to acheive higher returns also involve a higher degree of risk.
2. Be Transparent - Risk should be fully understood.
3. Seek experience- Risk is measured and managed by people, not mathematical models.
4. Know what you don’t know- Question the assumptions you make.
5. Communicate- Risk should be discussed openly.
6. Diversify- Diversification and asset allocation do not guarantee a profit nor protect against loss in a declining market. They are methods used to help manage risk.
7. Show discipline- A consistent rigorous approach will beat a constantly changing strategy.
8. Use common sense- It is better to be approximately right, than to be precisely wrong.
9. Return is only half of the equation- Decisions should be made only by considering the risk and return of the possibilities.