on the radio with Paul Petillo
Join Paul Petillo, Dave Kittredge and Dave Ng every week on Financial Impact Factor Radio as they to discuss everything from retirement to insurance, investing to estate planning, from getting started to preparing to stop.
books by Paul Petillo
I just published my fifth book - this time with Smashwords! ReBuilding Wealth in a Paycheck-to-Paycheck World by Paul Petillo, copyright 2011 This ebook is available across all platforms including iPad and iPhone, Amazon and Sony.
on personal finance
In the world of personal finance, asking what's the worst that could happen is not the same as asking: "will I be able to afford this?" or "have I saved enough for retirement?"
More personal finance
The Who, What, When, Where and Why of Retirement
If things are good, for some they won't be good enough. If it turns out that things are not so good, someone will ultimately benefit for this off-chance negativity.
More on retirement planning
American dream or not, the games you may have once played with financing your home are not available for the vast majority of homeowners.
More on mortgages and homes
Insurance : Life, Health, Auto, Home
Is the insurance industry the next victim of the financial crisis?
The mutual fund investor has a great many more options available to them in the post-Great Recession marketplace. The question is: are they right for you as you make a retirement plan using 401(k)s or IRAs?
More on investing
on twitter @PaulPetillo
Zack's Investment Tools: Stock Screener or Mutual Fund Screener
Our recent financial discussions
on growth risk
Growth used to be the buzz word. Now it represents other more
nefarious terms such as risk, chance, and possible loss of capital
investment. To a company with an idea, a product or a whole host of
services, growth represents the golden ring, the ability to make itself
more attractive to investors, lenders, and potential buyers looking to
integrate their businesses with another next new thing.
But growth depends on three elements: desire, trust and belief. In
the mutual fund world, where growth represents potential or the
fulfillment of projected expectations, you need more than the desire to
build or offer something that consumers want now or will need in the
future. It represents more than trust that the business plan laid out
for investors and shareholders will be worthwhile and worth the risk.
It also represents more than the belief that future markets will
receive your notion warmly or knick-knack with open arms.
You might say that growth boils down to the ability to borrow. And
you would not be incorrect in this assessment. Credit and the
extension of current credit depends on the lenders embrace of a
company's desire, belief and trust. What else do they have to go on? New companies will rely on private capital to get up and running. But
established companies, those that have gone public, need investors to
shore up the desire of the management, trust that their directions are
the right ones and the belief that if they hang on long enough, the
rewards will be worth the investment.
Growth is risk and risk offers the potential for reward, and loss. So
as we continue our discussion about investment risk, it is important to
grasp the need for this. You cannot hide from this risk even if you
tried to moderate the growth. As last year showed many novices and
experts alike, growth can bite back.
But that is no reason to ignore the potential because you were once
bitten. Shyness will result in two things. First, if you are in it
for your retirement fund, shunning growth in favor of value (older,
more established companies with dividends), bonds (the government issue
type not the corporate or municipal kind), or worse, savings in
traditional certificates or accounts, you will work longer. Growth is
not just for the younger investor either. Older investors still need a
portion of their portfolio in a growth focused fund (with the rest of
the portfolio diversified in less risky investments).
And secondly, if you are in it for the investment, growth will
provide the largest gains over the long-term. Long-term, for the sake
of this discussion is a period of time lasting ten years or more and
relies on the simple principle of dollar cost averaging (putting a
fixed amount in each month during that period) to be truly successful.
Growth investment risk is not only necessary but will power the
economy back to profitability - and yes, it will recover - help you
achieve the rewards that accompany the risk. The problem with growth
is the temptation to put everything into what is doing well and when
the market corrects such speculation, it is the growth investors who
feel it first. But when it recovers, it will be the growth investors
who win first.
The lesson is diversification - always has been. But growth risk is a much needed ingredient - similar to flour in bread.
Previously: Active Trading Risks
Counter Party Risk
Foreign Investment Risk
Growth Investment Risks
Issuer and Leverage Risks
bluecollardollar: from the blogWhat the 4% Retirement Payout Suggests
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