Quote:
Originally Posted by MarchHare
Do you not agree that people have different tolerances for risks at different ages, though? If I lose half of my retirement savings while I'm in my 30s, I'm not overly concerned about it because I have plenty of working years left in my career to make it back. My grandmother, on the other hand, doesn't have that luxury. She needs to know that her investments are safe and will provide her with a steady, predictable income for the remainder of her life.
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I agree with that. i suppose my disagreement is more with how that risk is characterized and disclosed to the client. There are a lot of bonds and fixed-income instruments that are much higher risk than a lot of equities. When a client hears bonds/fixed income they think its low risk....which might be the case. I can tell you that I would rather own shares in some companies than the bonds of others though if that makes sense?