Brian Decker the Owner and Founder of Decker Retirement Planning spoke with Janeen regarding how someone can recognize how much and how many risks they should be taking.
Brian tells ABC4 Utah Viewers that there are two parts to the decision of Risk Exposure.
The first part is MENTALLY. How much risk are they willing to accept and since they are a math-based company they have a questionnaire that allows you to know, on a scale of 1-100, what level of risk are you willing to accept.
The second part of this is how much risk are you actually taking today and what is the risk of your portfolio? It is common to have someone say that they are a level 40 risk but they own a portfolio that is a level 70 risk. That incompatibility will hurt you in the next market drop. Especially if you are retired.
You can go to the Decker Retirement Planning website to take the risk questionnaire and find out what your risk score is.
Since Decker Retirement Planning is a math-based firm they run a spreadsheet for their clients called an Income plan or Retirement Distribution plan and many factors go into calculating how much money you should have at Risk. Your age, your other income streams like Social Security, Rental income, pension, etc. They also look at the structure of your investments in IRA, 401K, and non-qualified investments to help you know how MUCH to have at Risk.
You can go here to see a sample income plan for yourselves.
Where can retired people get the highest returns for the least risk with their stock portfolios?
Decker Retirement Planning has searched the Wilshire database which is the largest database for money managers in the world, the Morningstar database which is the largest database for mutual funds in the world, and other databases for the “best” net of fee managers.
Here is the criteria:
- The manager must have been through a “crash” so that we can see proven results in asset protection.
- The manager must show a net fee performance.
- The manager must have actual, client account results. No hypothetical or back-tested numbers.
Then we took those results and removed the following:
- Managers who are “closed” to new investors.
- Hedge Funds, due to high risk and volatility.
- Managers with account minimums of $1M or more.
- High beta managers who do very well in the up markets but go down hard in the down markets.
What is left are the best 6 models and managers that they can find and all of them are computer, trend-following models.
Be sure to contact Brian and the team at Decker Retirement Planning to help you with your portfolio risk questions. Brian and Decker Retirement Planning will help you plan for your retirement future.
You can find additional information about Decker Retirement Planning by visiting their website or calling Ph# (833) 717-3030.
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