Unfortunately, since many financial advisors working today entered the business in the 1980s and 90s, during the best stock market in US history, they became stock market specialists, favoring growth instead of income. Many of them also became heavily focused on mutual funds. Mutual funds, in general, are a murky pool of investments that only publish their holdings once a quarter. That means in the middle of the quarter, you don’t know what stocks your money is invested in. And when you do find out, you may not always be getting an accurate picture. That’s because sometimes, fund managers will engage in something known as “window dressing”. Here’s how this tactic works:
Risk Tolerance and Investing for Income
Risk tolerance is one of the most important ingredients in creating a retirement plan that’s right for you. That’s why understanding risk tolerance and how to accurately determine your own is so important. Some people are naturally wired to take risks. Others are wired to avoid risk as much as possible.
