High Risk
 |
Low Risk
Investment Pyramid
The above is a simple chart of Investment categories by risk and reward. It is in the shape of a pyramid. With Investments at the top of the pyramid an individual can expect the greatest returns but because of the risk associated with these investments an individual can also experience the greatest risk of loss. Volatility is the key. If you knew exactly when to invest in high risk areas and exactly when to sell, then you should experience the highest returns. Consequently, with the investments at the bottom of the pyramid you would expect low returns with little risk of loss of investment. The placement of investment vehicles on the pyramid is subjective and opinions as to their placement could vary.
Proper Planning
The foundation for investing starts with proper financial planning; setting goals, establishing a budget, gathering financial records and knowing your net worth. The financial planning process starts with gathering information. For the financial planner to do his or her job, that person must know your present financial structure, your goals and risk tolerance. The more knowledge that can be obtained the better the financial planner can do his or her job. It is suggested you print and complete the client questionnaire then fax or mail it to our office.
Why Do You Need Health Insurance?
Today, health care costs are high, and getting higher. Who will pay your bills if you have a serious accident or a major illness? You buy health insurance for the same reason you buy other kinds of insurance, to protect yourself financially. With health insurance, you protect yourself and your family in case you need medical care that could be very expensive. You can't predict what your medical bills will be. In a good year, your costs may be low. But if you become ill, your bills could be very high. If you have insurance, many of your costs are covered by a third-party payer, not by you. A third-party payer can be an insurance company or, in some cases, it can be your employer.