The Advisor’s Corner is a resource for the community that offers insightful information into personal financial considerations and business financial issues.

The articles cover a broad range of topics, and we hope that you will find them useful in helping you to think about getting your fiscal house in order. Economic Empowerment starts at home.

Just How Risky is Your Portfolio?

If you’re like most people, you probably evaluate your portfolio in terms of its return. However, return isn’t the only factor you should consider; also important is the amount of risk you take in pursuing those returns. The term “risk” is often understood to mean the risk of loss. However, a portfolio is generally a means to an end, such as paying for retirement or a child’s college tuition. In that context, “risk” also means the risk of not meeting your financial needs

Details

Can You Make Some Green by Investing Green?

The release in April of the long-awaited report from the United Nations’ Intergovernmental Panel on Climate Change has spurred renewed discussion of ways to combat climate change and its effects. The report, written by leading scientists from around the globe, says that to keep greenhouse emissions below critical levels, the world must make substantial changes–and quickly–in how energy is produced and consumed. That finding has focused fresh attention on so-called “green investing.” Here are some considerations that can be especially important in this arena.

Details

Investor, Know Thyself: How Your Biases Can Affect Investment Decisions

Traditional economic models are based on a simple premise: people make rational financial decisions that are designed to maximize their economic benefits. In reality, however, most humans don’t make decisions based on a sterile analysis of the pros and cons. While most of us do think carefully about financial decisions, it is nearly impossible to completely disconnect from our “gut feelings,” that nagging intuition that seems to have been deeply implanted in the recesses of our brain.

Details

Correlation and Portfolio Performance

Asset allocation refers to how an investor’s portfolio is divided among asset classes, which tend to perform differently under different market conditions. In the financial world, correlation is a statistical measure of how two securities perform relative to each other. Securities that are positively correlated will have prices that tend to move in the same direction. Securities that are negatively correlated will have prices that move in the opposite direction.

Details

Growth, Value, or Both

The terms growth and value are often used to describe two different investment strategies, yet many investors may want both qualities in an investment. Famed investor Warren Buffett put it this way in a 2015 interview: “I always say if you aren’t investing for value, what are you investing for? And the idea that value and growth are two different things makes no sense…. Growth is part of the value equation.”

Details

Why Diversification Matters

When investing, particularly for long-term goals, there is one concept you will likely hear about over and over again — diversification. Why is diversification so important? The simple reason is that it helps ensure that your risk of loss is spread among a number of different investments. The theory is that if some of the investments in your portfolio decline in value, others may rise or hold steady, helping to offset the losses.

Details