July 2018

Are You A Safe Investor or A Gambler?

By Ray Mullaney
Originally published in Senior Digest

Are You A Safe Investor or A Gambler?
Take these 3 Simple Logic Tests and Find Out

Logic Test 1

Do you know how to measure investment risks? Or, do you believe measuring risks is unnecessary?

If you do not know why stocks rise and fall, and you do not know how to reliably measure stock risks and market risks, then, you have no way of controlling the how much risk you are taking with your investments. This makes you a gambler, not a safe investor.

Logic Test 2

You will sell before a crash, or hold at all times, suffer through a crash and lose half your savings?

Or, will you sell after the market has made a major runup, protect your gains and avoid great losses?

Are you a gambler or a safe investor?

Logic Test 3

Will your advisor ever advise you to sell your holdings, or

Will he keep you invested at ALL times, regardless of how risky the market becomes?

100% of your Financial Advisor’s income (and job security) depends on keeping your assets fully invested in stocks and mutual funds, no matter how high the risks and how much YOU could lose.

If you stay invested at all times, you WILL suffer through a crash, that is a fact of life!  Another fact is: your investments may never recover from their losses, or not in your lifetime.

Do you use common sense and pull the plug? Or, Do you throw cation to the wind and stay invested, no matter how risky the market becomes?

Are you a Safe Investor or a Gambler?

Fact: Your advisor will never tell you to sell.

Ask him to show you what he advised his clients to do before the crash or 2001-03; what he told clients to do before the crash of 2008-09, and most importantly, ask hm what methods he uses to warn him that the risks of investing may be too great to justify investing?  Ask him if he will ever tell you to sell, because the risks are too high.  If he says “never”, he is either ignorant of how to measure risks, or he is looking after his own income, and not protecting your assets. Either way, you need a second opinion on risk management and portfolio optimization.

If you suffer from any these problems, your savings are doomed to a major decline!

But it doesn’t have to be this way. We can help!

Capital Preservation is not just our name, it is our mission!

We lower our fees, very significantly, when we reduce your expose to risks. More importantly, if the value of your account declines by more than 6% we reduce our fee rate considerably! The more we lose, the lower our rate goes. Therefore, our greatest financial incentive is to PROTECT your savings – unlike other advisors whose greatest reward comes from gambling with your savings!

Most importantly, our risk measurement systems may protect you from losing a great deal of your money.  And, our fess may be 50% (or less) than what your present advisers charge.

Call us for a free consultation.

Raymond Mullaney, President

Capital Preservation Advisors, LLC
Registered Investment Advisors