December 29, 2013

How to make investing less scary

By Marcie Geffner - Bankrate.com

Investors naturally tend to focus on the return they expect to receive from a financial strategy or investment. But that single-mindedness can be a huge mistake because it ignores the impact of risk.

Too much risk can lead to what Arlen Olberding, owner of Guidepost Financial Planning in Fort Collins, Colo., describes as "inappropriate responses," such as buying too aggressively when the stock market is overheated or selling in a panic when the stock market takes a dive.

"Make sure you're aware of what you're buying, how much risk you're taking and what you're comfortable with," Olberding says.

Read more: http://www.bankrate.com/finance/investing/investment-risk-how-to-lessen.aspx