Nature's intelligence functions effortlessly, frictionlessly, spontaneously. It is non-linear; it is intuitive, holistic, and nourishing. And when you are in harmony with nature, when you are established in the knowdledge of your true Self, you can make use of the Law of Least Effort.
And when we harness the forces of harmony, joy, and love, we create success and good fortune with effortless ease.
There is a link between the amount of risk an investor takes and the amount of the return on the investment. Higher risk provides higher return with a potential of higher loss. Lower risk investments offer lower return but greater security.
Each investor is different and has a different attitude to investment.
For any target return below 9% (the long-term mean annual compound return), as the holding period increases, the probability of obtaining at least the target return also increases. For any target return above 9%, the probability of obtaining at least the target return decreases as the holding period increases. Taken together, these points reinforce the argument that, as the investment horizon increases, the mean annual compound delivered by the market tends to converge to its long-term mean annual compound return.
Be sure to review your portfolio every six months to account for changes in your circumstances.
It will also show you the returns
that the target portfolio may produce, based on historical averages.
Data since 1970, rolling 10 years, based on accumulation indexes
Your personal questionnaire is the most important tool, the foundation of our conversation about your unique combination of risk preferences and aversions.
“There’s your psychology — we need to figure out what that is; what risks you need to take to achieve your goals; we need to apply some form of stochastic modeling to find out how to achieve your goals, your capacity for loss; and whether you actually understand anything.”
Nothing can replace a personal and confidential conversation about your risk profile.
This is key in financial planning.