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424-835-5733 | 310-525-3516
866-451-2517

You may have lost money in your investment portfolio,
due to mismanagement and not even know it.

How Much Risk Is Too Much Risk?

If you are working with a stock broker or investment advisor for the first time, you might be unsure about how much risk is too much risk. You want your money to make money, but you've worked a long time to accumulate these funds. It can seem irresponsible to risk too much, but some might say that in order to get the most out of your investment, you have to take risks.

So what do I do?

Unfortunately, no one, not even an investment advisor, can tell you what to do. It's up to you. You can take the advice of an experienced advisor, but ultimately, that advisor's job is to listen to you. In fact, they are legally required to listen to your goals regarding the investment in order to make suitable recommendations.

What if they don't listen?

According to the Financial Industry Regulatory Authority (FINRA), they are obligated to make recommendations that are within your goal objectives. If your objective is to play it safe, they must adhere to that goal. If you find that your advisor has been taking risks with your money that is well outside the scope of your goals, they may have violated their duty as your advisor. They can be held accountable for the mismanagement of your money.

Where do I start?

The best place to begin is to determine your overall goal for your investment at this stage in your life. Read, research and discuss your options. Perhaps right now, what makes most sense is moderate growth and lower risk investments. Or maybe now is the time to take those risks. These decisions depend on your overall financial plan and strategy.

Once you've outlined your short- and long-term goals, you should find a broker or advisor you trust. A good advisor will truly listen to you and align his or her recommendations with your goals. 

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