Don't go past your Breaking Point

How much risk is right for you? Generally, accepting more risk can increase your potential return, but it also increases your potential loss. Your Target Portfolio should be the one with the greatest loss you could suffer before you felt you had to sell your investments to stop the pain. We call that your Breaking Point.

Unfortunately, during the Great Recession, which lasted from November 2007 to February 2009, many investors hit their Breaking Point. They sold at the worst time, when the market was down. This locked in their losses, so they didn’t benefit from the recovery that followed.

By knowing your Breaking Point, you can keep this from happening to you if we suffer through another Bear Market.