Risk Management

Risk management is a vital component of financial planning, aimed at minimizing potential losses while maximizing returns. At the heart of effective risk management lies the concept of understanding one's tolerance for risk, often quantified through a 'risk number.' This numerical representation allows individuals to align their investment strategies with their comfort levels, ensuring a balanced approach that accounts for both potential gains and losses. By assessing factors such as financial goals, time horizon, and risk appetite, individuals can determine their risk number, providing a cornerstone for informed decision-making and strategic asset allocation in pursuit of their financial objectives.

Find Your Risk Number HERE!

Warren Buffett is famous for saying, “The first rule of an investment is don't lose [money].” Even for those whose fame represents wealth and fiscal responsibility, like Mr, Buffett, it is impossible to invest without losing some of the time. The truth is that risk is inherent in life, and while living normal lives, everyone has to make difficult choices without knowing what the exact outcome will be. This is why understanding investment risk and one’s appetite or tolerance for risk is key to making informed investment decisions.

Understanding Risk Management

Understanding Risk Management

Assessing how much risk one is comfortable with is tricky, but worth it. From a psychological perspective, it’s almost impossible to measure risk objectively. That is why at Ntact, we try to quantify risk tolerance through a more scientific method. Utilizing a tool called Riskalyze, we help our clients assess their “risk number.” By answering a few basic questions about your financial objectives, your desired retirement timeline, and your current financial situation, you will be assigned a numeric value to your respective risk tolerance/comfort level. This is your risk number.

Think of your risk number as your “sleep number” for investment. This is the level you are or should be comfortable with–meaning the amount of risk you can tolerate while maintaining a comfortable lifestyle now and on your way to retirement. 

Risk Management with Ntact Retirement Solutions

At Ntact Retirement Solutions, we introduce the concept of quantifying investment risk and exploring the strategies that we can use to reduce one’s exposure to risk. Our “Safety First” investment process and philosophy are designed to achieve your investment and retirement goals. In managing your risk, we may use tools such as:

  • Exchange Traded Funds (ETF’s): We use ETFs that have downside buffers of 9, 10, 15, or 20 percent. 
  • Enhanced ETF’s: We also utilize ETFs that not only have downside buffers but also accelerated potential to the upside. 
  • Structured Notes: Fixed income options may include Structured Notes that also have increased interest rates and downside principal protections.  
  • Multi-year guaranteed Annuities: For those clients who want to include even more specific return and protection features in their portfolios, we can also provide annuities that eliminate any possibility of loss of principal. 
  • Deferred annuities: These can provide an income stream for life (your very own “personal pension”).

At Ntact Retirement Solutions, we provide custom solutions, as unique as you are. We build and shape portfolios and investment plans that center around your risk number and your specific goals. 

Risk Management Near Me

Risk Management Near Me

If you’ve been searching for “risk management near me,” you have come to the right place! We can meet in person anywhere in and around Las Vegas, or we can meet with you remotely to go over your unique tolerance for risk. So, are you ready to discover your risk number and get help managing your investments using it? Reach out to Ntact Retirement Solutions today for a complimentary consultation. Together, we can get you on track for the retirement of your dreams!

Frequently Asked Questions

What is investment risk management?

Investment risk management refers to the process of identifying, assessing, and mitigating potential risks associated with investment activities. This includes analyzing various factors such as market volatility, economic conditions, and specific risks related to investment vehicles or strategies.

How does risk tolerance impact investment decisions?

Understanding one's risk tolerance is essential for building a suitable investment portfolio. Investors with a higher risk tolerance may be more comfortable with volatile investments that offer potentially higher returns, such as stocks or emerging markets. Conversely, investors with a lower risk tolerance may prefer safer options like bonds or diversified funds. Aligning investment decisions with risk tolerance helps investors maintain a balanced approach and avoid taking on excessive risk.

What are Exchange Traded Funds (ETFs)?

ETFs have gained popularity among investors for several reasons. They offer diversification, liquidity, and flexibility at a relatively low cost. ETFs provide exposure to a wide range of assets and investment strategies, allowing investors to easily build a diversified portfolio without needing to purchase individual securities. Additionally, ETFs can be bought and sold throughout the trading day, providing liquidity and transparency to investors. Overall, ETFs are a convenient and cost-effective way to access various markets and sectors, making them attractive investment options for both individual and institutional investors.

For more information about our firm and the services we offer, send us a quick email or call the office. We would welcome the opportunity to speak with you.

retirentact@gmail.com |  702-804-4902