We’ve all heard that higher risk gives you the potential of higher reward in the stock market. But how much risk do you actually need to get a good return?
If you’re fully invested in the S&P 500, for example, you would get 100% of the gains and 100% of the losses. What if you could eliminate some of that risk of loss?
If you eliminate 20 percent of the losses, you would only need 85 percent of the gains to achieve the same results.
Further, what if you could eliminate all of the losses, so that you never lose money in the market? You would only need a 28 percent market return in good months to achieve the same results as being fully invested.
By eliminating all market risk, and at the same time earning 30, 40 or even 50 percent of what the market does in good months, you would “beat the market.”
Sometimes, more risk is not the most efficient way to achieve your financial goals. Call Higher Ground Financial today to find out how reducing risk might help you have a more secure future.
888-263-HGFG (888-263-4434)
Subscribe to our YouTube channel for more educational content.