Manage Risk To Achieve Your Financial Goals

“The essence of portfolio management is the management of risks, not the management of returns.”
Benjamin Graham, “The Intelligent Investor” (1949) and Mentor to Warren Buffett

Understanding and controlling investment risk is essential to achieving your financial goals.

How do you do this? The answer is as different as each of our clients is unique.

That’s why, through our effective Fourfold Process we begin by working with you to define your financial goals. Then, we can help to create a smart plan to reach your quantifiable goals with a level of risk appropriate for you. Finally, we can help you to take advantage of sound programs that can offer both growth potential and risk management.

Common questions we are asked about managing risk include:


How much investment risk is okay?

That is often a function of your comfort levels and goals. Our effective process helps you establish “Your Number,” which in turn can identify the trade-off’s between your priorities. Clients find this process very empowering in taking control of their financial future.

Simply, our effective financial planning process puts you in control of your financial life, including creating goals and, more importantly, being able to periodically track your progress toward achieving them.

Managing your resources effectively is becoming increasingly important in an age when taxes, inflation, and inadequate financial management may lead to uncertain or unanticipated financial futures.


What are some leading advantages of managing risk?

Addressing the inflation risk – A big benefit of managing risk is reducing the potential of losing principal or purchasing power from inflation.

Protecting your assets and estate – You can think of it as “environmental protection” for your assets and estate. Just like the environment, your assets and estate can be eroded by different external forces: income loss due to death of a loved one, disability or illness, and loss or damage to property.

The financial impact of these forces can be mitigated with proper estate planning, which is one of the things we do best.

Preserving your legacy – When a loved one passes, his or her legacy (the assets created during a lifetime) must be preserved. Proper estate planning ensures that your loved ones can move forward as expeditiously and efficiently as possible – often the best gift you can leave for them. See our published article “Avoiding Estate Planning Pitfalls.”


Can managing risk help in planning for college?
Yes, there is a smart way to plan for a college education; one that improves your chance of achieving your education goals.

Working closely with you, we develop a systematic plan of savings and investment. We take into account a variety of factors, including:

  • The degree of control you want over the college fund
  • How it is spent
  • The impact of your planning on potential financial aid

We can also help to ensure that income tax implications are clarified and understood.


In What Ways Can Managing Risk Help Me Protect My Family?
If you are not there to protect your family, the solution is about much more than just wages

Ultimately, it’s about the future – paying for outstanding liabilities, future liabilities, future education funding, and retirement needs of the survivors. A Life Insurance Needs Analysis can help estimate precisely how much coverage is needed to protect your family. See our published article “Avoiding Estate Planning Pitfalls.”

And we won’t overlook disability income insurance, if you experience a time period when your ability to earn income is compromised.

We can help to make sure you’re financially prepared. An acceptable level of liability insurance and health insurance prevents the eroding of your existing asset base and the potential use of earned income for unexpected emergencies.


What Are Key Risk Considerations in Protecting My Home?
It comes down to an adequate level of homeowner’s insurance. This can make all the difference between having a tough time coming through a disaster and having everything in place to flourish as you move forward.

Key risk management considerations take into account the replacement value of your home, vacation property, furnishings, and other such assets. In addition, the appropriate level of automobile insurance must be in place to protect you from a major property loss through accident or theft.

Discover how Kauffman Wealth Services’ extraordinarily personalized approach to financial planning and management can help you on the road to a Life Well Lived.

Pasadena: 626.795.6874
Santa Barbara: 805.969.5444
Toll Free: 866.467.8981
Email:  contact us here

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