Many market shocks are short-lived once investors conclude the event is unlikely to cause lasting economic damage. Still, major market downturns such as the 2000 dot-com bust and the 2008-09 credit crisis are powerful reminders that we cannot control or predict exactly how, where, or when precarious situations will arise.
Tag: Risk Management
The opportunity to acquire company stock — inside or outside a workplace retirement plan — can be a lucrative employee benefit. But having too much of your retirement plan assets or net worth concentrated in your employer’s stock could become a problem if the company or sector hits hard times and the stock price plummets.
With stories of the many victims of Hurricane Harvey and Hurricane Irma dominating the news, we are reminded of the devastation natural disasters can bring. The loss of life and enormous economic loss are staggering. While we are largely powerless when faced with storms of this magnitude, there are still steps we can take to prepare for the unexpected. While most disaster preparedness focuses on physical survival, there are critical measures we should take to minimize the financial havoc a natural disaster could otherwise bring.
Company stock, especially if it was awarded as part of a long term incentive package, can be a terrific way to build wealth. But it can be a double-edged sword, too. Over-concentration in a single stock probably represents one of the biggest mistakes we have seen retirees make. And when the stock is from the company where they built their career, they may have a strong emotional attachment that can cloud judgement.
Floods, tornadoes, torrential rain, lightning, and hail are common events in many parts of the country during the spring and may result in widespread damage. Severe weather often strikes with little warning, so take measures now to protect yourself and your property.
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