Boulder City Magazine is a monthly publication full of information about Boulder City and Southern Nevada. Boulder City Magazine features the Boulder City Home Guide, a real estate guide to Boulder City and Southern Nevada.



Money Matters
by Wendell Whitman
Edward Jones

Understanding Risk
To be a successful investor, you need patience, discipline and a long-term vision of what you want to achieve from your investments. But you also need the ability to manage risk. And to truly manage risk, you first need to understand the risks of investing.

First, you need to know your own risk tolerance. How much risk will you be willing to incur in exchange for potentially higher returns?

You’ll also need to understand your risk capacity. How much risk you can actually handle, from a financial perspective.

Finally, you should know your required risk. The amount of risk you’ll need to accept to achieve the returns necessary to reach your goals.

Ultimately, you must use your risk tolerance, risk capacity and required risk as factors in a comprehensive investment strategy. By creating this strategy, and sticking with it over time, you’ll be able to make appropriate investment decisions throughout your life.
 
SYSTEMATIC INVESTING

Most investments move up and down. How can you deal with this volatility?

Consider following a time-tested strategy known as systematic investing, which involves investing a fixed dollar amount at regular intervals.

So, for example, you could invest $100 per month, every month, into the same investment. Over time, this technique can help you potentially lower the cost of investing and reduce the effects of dramatic price swings. Plus, it can help make you a more disciplined investor.

While systematic investing can help you cope with volatility, it can’t guarantee a profit or prevent a loss in declining markets. And you need the financial wherewithal to keep investing through up and down markets.

But if you have that ability, consider putting systematic investing to work. It may not be glitzy or glamorous, but it can be effective.  


Contact Wendell at Edward Jones www.edwardjones.com.




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