Danger

November 10, 2021 - Published by IAG Wealth Partners

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deer crossing

This is the most dangerous time of the year.

Sometimes you can see the danger ahead and take precautions. Other times the danger springs upon you out of nowhere.

Between the humans adjusting to driving in the dark and the deer doing what deer do in the fall, this is the most dangerous time of the year.

According to the Wisconsin Department of Natural Resources (DNR), Wisconsin’s deer population is about 1,600,000. On average, Wisconsin drivers hit 19,000 of these deer with their vehicles every year – averaging 52 crashes per day.

Obviously, the best way to eliminate the risk of hitting a deer is to not drive. This is an extreme approach that negatively impacts your quality of life and creates other risks (mental health and physical health to name two).

Another approach would be to always drive as fast as you can. This significantly reduces the amount of time your vehicle is at risk of hitting a deer by maximizing the amount of time it is safely parked. This also creates additional risks (speeding tickets and non-deer crashes to name two).

A better approach may be to drive the speed limit, prudently use your bright lights for extra vision, pay close attention near deer crossing signs, and do not swerve when a deer jumps in front of you.

An investment portfolio is no different. We know there is always the risk of crashes (thankfully not 52 per day), and we need to balance our desire to get to our destination with the risks along the way.

Avoiding the financial market entirely is certainly an option, but it comes with the risk of running out of money or not keeping up with inflation.

Taking extreme risk may quench some people’s desire for a sense of adventure, but it comes with the risk of losing everything.

Our approach with our clients’ portfolios is more measured. We help to identify the risks that must be taken on the path to our clients’ personal and financial goals, to prepare in advance for potential negative outcomes from higher risk areas, and to steadfastly not swerve when adrenaline-inducing events unfold in front of us.

Be careful out there!

 

Quote of the week: Jeffrey Saut: “Investing is a get rich slowly process. You have to put your money at risk in the face of uncertainty. Emotions run rampant before the uncertainty of floating, fluctuating, often violent and volatile markets.”

 


Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through IAG Wealth Partners, LLC, (IAG) a registered investment advisor and separate entity from LPL Financial.

Any opinions are those of IAG and not necessarily those of LPL Financial. Expressions of opinion are as of this date and are subject to change without notice. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. No strategy assures success or protects against loss. Investing involves risk including loss of principal.

Photo credit: Flickr

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