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Fleming Financial Services Blog

At Fleming Financial Services, Inc., our role is to assist our clients in defining and realizing their financial objectives and goals. We work with our clients to implement personalized plans designed for their unique situations. Our areas of concentration are: Retirement planning, Estate and Wealth Transfer strategies, and Business Continuation planning. We emphasize the importance of conducting our business with integrity and professionalism. As a member of PartnersFinancial, an independent national financial services company, we are able to provide access to sophisticated resources for the benefit of our clients. Some of the professionals with our firm are currently registered to conduct business through NFP Securities, Inc. With those additional resources in place, we help facilitate the complex corporate and personal financial decisions our clients must make.

Five Keys to Investing For Retirement - Key #3 Consider your risk tolerance

Thomas Joseph Thomas Joseph , 6/2/2015
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Fleming Financial Services, PA, 5 Keys to RetirementConsider your risk tolerance Another key factor in your retirement investing decisions is your risk tolerance--basically, how well you can handle a possible investment loss.  There are two aspects to risk tolerance.  The first is your financial ability to survive a loss.  If you expect to need your money soon--for example, if you plan to begin using your retirement savings in the next year or so--those needs reduce your ability to withstand even a small loss.  However, if you're investing for the long term, don't expect to need the money immediately, or have other assets to rely on in an emergency, your risk tolerance may be higher. The second aspect of risk tolerance is your emotional ability to withstand the possibility of loss.  If you're invested in a way that doesn't let you sleep at night, you may need to consider reducing the amount of risk in your portfolio.  Many people think they're comfortable with risk, only to find out when the market takes a turn for the worse that they're actually a lot less risk-tolerant than they thought.  Often that means they wind up selling in a panic when prices are lowest.  Try to be honest about how you might react to a market downturn, and plan accordingly. Remember that there are many ways to manage risk.  For example, understanding the potential risks and rewards of each of your investments and its role in your portfolio may help you gauge your emotional risk tolerance more accurately.  Also, having money deducted from your paycheck and put into your retirement plan helps spread your risk over time.  By investing regularly, you reduce the chance of investing a large sum just before the market takes a downturn. ©2013 Broadridge Investor Communication Solutions, Inc. All rights reserved.