Perhaps you’ve heard this saying: “There are old pilots; and there are bold pilots; but there are no old, bold pilots.”
The same applies to investing because at the end of the day – for both pilots and investors – it’s about their respect and tolerance for risk.
Said another way, the key to longevity is survival.
At Blueprint, we think the main risk faced by advisors’ clients is preserving compounding – and that the way to reduce that threat is by avoiding catastrophic loss.
This was one of the topics I covered during a recent interview on the Strategic Investor Radio podcast with Charley Wright. We also covered:
- Behavioral finance
- Why price is the most important variable for making buy/sell decisions
- How Blueprint partners with financial advisors to offer assistance with practice management
You can listen to the full podcast here:
To reiterate the final point of the interview: Uncertainty seems as high as ever right now. The guidance we have been offering advisors is to use this as an opportunity to check in on their clients’ goals and portfolios.
Then, be honest with yourself when you answer the question, “Am I employing the most optimal, comprehensive strategy to help my clients meet their goals?” Set aside anything that will bias your response so you can get serious about considering future market risk and how to preserve compounding for your clients.
Remember, trying to manage risk in hindsight is like trying to purchase car insurance after being rear-ended. Unfortunately, it doesn’t work that way.
Feel free to reach out if you’d like to discuss Blueprint’s managing risk in a portfolio.