Date: Sep 12TH, 2023

Effective Strategies for Keeping Your Financial Assets Safe

There are times in your financial life when some risk is acceptable: when you’re young, for example, and hoping to capitalize on a good investment market. (If you get it wrong, after all, you have decades to correct the problem.) There are other times when risk is far less acceptable, including just before a large purchase (like a home), in the event of illness or unemployment, or when you’re approaching retirement. A miscalculation too close to retirement can result in having to delay a planned retirement by years, or a reduction in the amount of income you’ll receive after you cease working.  

Most investors, however, are not necessarily educated enough on the subject to calculate their risk tolerance, or even assign risk to their financial activities. This is where a financial advisor can greatly benefit your savings and investment strategies. With proper risk management advice, the key features of any investments you engage in can be explained to you, as well as the associated costs. Risk management service helps you understand what you are investing in and why. Plus, you can compare the total expense to the investments upside potential. 

The following are some ways an investment manager can help you. 

They can build a risk profile for you. A professional investment manager will evaluate your current holdings and assign risk to each. They can help you understand what your tolerance for risk is given your current life situation and suggest investment products that match that risk tolerance. 

They can guide you to an independent, brand name custodian. Many investment advisors do not take physical custody of your money: instead, they use a reputable custodian who is also responsible for trillions in other assets. This way, you can be sure your assets are with a company that is fully certified and acting in conjunction with federal regulations. 

They can help you build a cushion. While investing is important, it’s also critical to keep a cushion of cash for hard times, or in the event of a market slide. A professional investment advisor can recommend how much cash to keep liquid, and where to put it so it continues to earn for you. 

They can prevent the drag of negative interest rates. While negative interest rates were virtually unheard of in the past, today they are a reality in many parts of the world.  An investment advisor can structure any fixed-income investments you may have in a way that helps you avoid the possibility of negative interest rates.

Choose a Risk Management Professional

Prime Wealth Advisors is passionate about helping you protect your wealth and structure a secure income stream in retirement. Our experienced team of financial planners, investment managers, tax accountants and attorneys work together to help you minimize worries and maximize results.

Arizona-based Prime Wealth Advisors is a full-service investment, tax, retirement planning, estate and wealth management firm that can craft a robust investment plan for you, your business and your heirs. Call 623.77.PRIME or visit our website for more information.