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Risk has changed, because life has changed. Our goal is to help our clients retire without compromising lifestyle, or without them having any real concern about outliving their income.
Prices go up and down, but the truth is that declines are temporary if you keep a long term time horizon in mind. You don’t just have to buy an investment, you have to keep it, even through sickening market declines, and when some other investment is “outperforming” it. There are reasons for changing investments at times, but overall it is important to stay invested! At the end of your investing lifetime, it will not matter what your funds did—it will matter what you did. We believe that time in the market is much more important that timing the market.
You have to make your money work for you!
Inflation is a silent compounding tax. From 1950 through 2010, the cost of living increased every year but one.  Investments have to deliver an after tax return better than the cost of living. At just an average annual inflation rate of 3% over the last 20 years $50,000 would need to grow to $109,000 to provide the same standard of living.
Diversification used to mean different asset classes, and different companies in different industries in different sectors. Now diversification includes those things, but also includes investing in different countries, alternative investments and different investment managers within a portfolio. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
Dividends from a portfolio of successful companies have risen over time. Since 1961, US equities have produced an annual rate of return of 11.10% while Treasury Bills have produced 5.27% . The payment of dividends is not guaranteed. Companies may reduce or eliminate the payment of dividends at any given time.
Investors are emotional. These emotions can lead investors to freeze from fear at the bottom and have greed become uncontrollable at the top.
 Bureau of Labor Statistics, http://www.bls.gov/cpi/cpid1409.pdf
 New York University, Leonard N. School of Business http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histret.html