Q & A

Q.  How do you feel about what the government is doing to remedy the current economic situation?

A.  I would describe the recent government intervention more as "plunging in" than merely taking steps.  It's quite amazing to watch as Congress, the Federal Reserve, the US Treasury, the FDIC and the FASB (accounting board) have jumped into the fray to participate in "the remedy."  The actual effects remain to be seen, and no doubt will be debated for years to come, but suffice it to say, we are witnessing one of the most dramatic governmental interventions into American business in our lifetime.

Q.  Are clients becoming more conservative than they were a year ago?

A.  You wouldn't be human if uncertain market conditions didn't make you think about being more conservative.  Many investors are feeling as though they just want to "stop the bleeding" and not lose any more money.  However, it's important to ensurre you continue to look at your long-term strategy when making financial decisions instead of letting emotions impact your decisions.

Q.  Should individual investors be adjusting their risk tolerance, and if so, how?

A.  For many of us, the events of 2008 have already adjusted our tolerance for risk!  Where one goes from here depends upon one's unique situation, but more than ever, the concept of portfolio risk needs to be addressed head on.  It's not as simple as, "If I'm young, I'm aggressive" and "If I'm near retirement, I'm conservative."  If you are losing sleep over the gyrations of the market, your financial professional should take that into account as he or she helps you build and manage a strategy.  There are many different investment tools available to suit your individual appetite for risk and long-term goals, and your financial professional can help you determine which ones are right for you.

A conversation with Alan, as seen in the "Financial Spotlight" section of Suncountry Magazine