REAL SAFETY

How Much Can You Afford To Lose?

 

This is a key question everyone should ask.  Once you know the answer to this question you can begin to analyze your retirement assets and decide how much risk you are taking and whether it lines up with your answer.

 

A general rule of thumb that some advisors use when analyzing your financial position is the rule of 100.  This rule of thumb simply states that the older you are the more of your assets should be allocated to the “Base” of the pyramid shown below.  This rule assumes that as you age you will value stability and guarantees over more aggressive positions.

 

If you are 65 years old for example, the rule of 100 suggests that 65% of your assets should be allocated near the base of the pyramid.  If you are 75 then 75% of your assets should be in these safer guaranteed or insured positions.  We believe in the rule of 100 as a starting point but every situation is different and a well thought out plan will uncover what is right for you.

 

HIGH RISK

LOW RISK

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