Wachovia Understanding Risk

First, understand that there is no risk free investment. The saying that “nothing ventured, nothing gained” holds true. However, with a little bit of strategy you can learn to use risk to strengthen your portfolio.

While the word “risk” sounds ominous, try to look at it positively. Risk is an element that should be considered towards achieving your investment goals. Since most of us have fear of the unknown, we need to examine how risk affects us and guides us, in order to better manage our money. Knowing your tolerance for market risk will guide you toward comfortable investment choices.

Diversify.

By spreading your money across different asset classes such as real estate, stocks, and bonds, you may dramatically reduce the risk in your portfolio. Adding mutual funds is a great way to potentially reduce risk because they invest in many different securities.

Assess yourself.

You need to look at your goals and your timeline in order to evaluate a level of comfortable risk. If you want growth, you’ll incur more risk because you’ll need more in stocks. If you want to maintain income, you’ll still have some level of risk, but you’ll have a greater amount of money in investments that are more stable investments such as CDs and bonds. Look over your investment goals and then find out how your risk tolerance matches with your long-term and short-term goals.

Work with a Financial Advisor.

When you have questions and concerns, a financial professional can help you make informed decisions. They can help you assess your goals and risk tolerance to build a portfolio that meets your needs. Stay up with the latest news, research your investments, and understand that you can learn to manage your investments along with the risks.

Wachovia Securities is the trade name used by two separate, registered broker-dealers and non-bank affiliates of Wachovia Corporation providing certain retail securities brokerage services: Wachovia Securities, LLC, Member NYSE/SIPC, and Wachovia Securities Financial Network, LLC, Member FINRA /SIPC.

Only deposit products are FDIC-insured.

Periodic investment plans do not assure a profit and do not protect against loss in declining markets. Since such a plan involves continuous investment in securities, investors should consider their financial ability to continue purchases through periods of low price levels.

Member FDIC

HOW CAN I PUT "RISK" IN MY FAVOR?

Diversify.

Assess yourself.

Work with a Financial Advisor.