Investors are always trying to evaluate risk and how much risk they are willing to take on within their portfolios. A great amount of risk can potentially result in a large reward; it can also lead to an equal or greater amount of loss. For some investors, more risk is a good thing because they have time and resources to fall back on. For others, risk is something to minimize. So how do you know what amount of risk you should be taking on?
The “Rule of 100” is a simple way to estimate how aggressive your investments should be. We have provided an easy-to-read infographic that will teach you how to use the “Rule of 100” and what it can show you about your portfolio.
Keep in mind that the Rule of 100 is a tool that helps make estimations from a general prospective. Each person is different and your investment strategy may not reflect exactly what the Rule of 100 shows. That is OK. The purpose is to have investors thinking about what changes to make to their portfolio as they get older. Try to use this investment tool on your own. What does it tell you? We would also love to talk to you about how to use this tool and other investment resources we have. Feel free to give us a call or email.
Here at USelfDirect we believe in empowering investors through education. Our team of experienced Self Directed Investment professionals are here to help answer your questions. We have years of experience and have seen nearly every type of account, investment, tax issue, funding method, and question imaginable. Give us a call and let us offer our expertise.
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