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How Much Risk Is Right For You?

Mark Hebner,
President of IFA
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It seems like a pretty
easy question, doesn’t it? Surprisingly, most investors
have no idea how much risk is right for them. Even worse, they
have no idea how much risk they’re taking! As a result, the
overwhelming majority of investors fail to earn the returns of even
a simple S&P 500 Index over periods of ten or more years.
Nobel-prize winning research shows us that investors can earn higher
expected returns by investing in portfolios of globally
diversified index fund portfolios that match their Risk
Capacity--their ability to take on stock market risk.
What’s your Risk
Capacity? Find out right now when you
take the simple 10-minute,
no-obligation survey. When you complete
the survey, you will learn your personal Risk Capacity, and you
will be matched to the Index
Portfolio that is right for you.
And, you will receive a link to a free copy of my e-book Index
Funds: The 12-Step Program for Active Investors highly
praised by industry experts like John C. Bogle, Paul Samuelson
and Burton Malkiel.
To learn more about index funds investing, visit ifa.com,
Index Funds Advisors’ comprehensive
site about index investing. There you will find hundreds of charts,
comparisons, articles, podcasts, videos and 80 years of risk and
return data that comprehensively details the Science of Investing.
Index Funds Advisors
Index Funds
Advisors (IFA) is a fee-only independent
financial advisor that provides wealth management by utilizing
risk-appropriate, returns-optimized, and tax-managed portfolios
of index funds. IFA founder, Mark Hebner and the team at IFA have
done extensive research as shown on this web site and the #1
ranked book on index funds. This research leads our clients
to the optimal money management strategy, net of our advisory fees and
taxes. IFA completely avoids the futile, speculative, and unnecessary
cost-generating activities of stock, time, manager,
and style picking.
Instead, our investment strategy employs a disciplined, quantitative
approach, emphasizing broad diversification and consistent exposure
to the structural trends of publicly traded markets around the
world, with an overweighting of small and value priced companies.
In short, we invest in capitalism.
The IFA advice is based on the highly respected research
indexes designed by Eugene Fama and Kenneth French and documented
in their empirical and peer-reviewed publications. The two professors rank
#1 and #2 on total downloads per paper among 10.5 million downloads on
the Social Sciences Research Network. Our current and independent
advice incorporates 80 years of
IFA Indexes and Indexfolio risk
and return data, third generation index fund designs and
25 years of refined passive trading techniques employed by Dimensional
Fund Advisors (DFA.)
IFA does not accept payments from DFA or from any other recommended
investments. IFA is exclusively paid by its 2,000+ clients for
its advice on the optimal wealth management of approximately
$1billion of assets under management, as of July 2007.
Explore ifa.com
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“Most
investors, both institutional and individual will find that
the best way to own common stocks is through an index fund
that charges minimal fees…those following this path
are sure to beat the net results (after fees and expenses)
delivered by the great majority of investment professionals.”
- Warren Buffett, 1996 Letter
to Berkshire Hathaway shareholders |
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“Index funds eliminate the risks of individual stocks,
market sectors, and manager selection. Only stock market risk
remains.”
- John C. Bogle, Founder of The Vanguard
Group and author of six investing books, including The Little
Book of Common Sense Investing, The Only Way to Guarantee Your
Fair Share of Stock Market Returns, 2007 |
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