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Are you behind in your financial plan and trying to catch up? Some people believe that the only way they can create more returns is to take bigger risks. However, as experienced retirement & financial advisor Wayne von Borstel in Portland, Oregon, explains, a greater risk doesn’t always generate a greater reward.
As the founder and president of Oregon-based financial planning firm von Borstel and Associates, von Borstel has helped more than 450 families across the USA achieve happier, simpler, and more successful financial lives.
Here, we’ll explore von Borstel’s stance on short and long-term risk-taking and the benefit of taking risks that align with your overall financial plan.
Taking Risks In Financial Planning
While short-term investments can bring returns, von Borstel warns that taking short-term risks that don’t fit your financial plan or who you are will likely lead to failure.
Short-term investments typically last up to 5 years but can last as few as 3-12 months. Taking risks in the short term will place your investment at the whim of the USA and global markets, and we never know what may lie around the corner.
If you aren’t meeting your financial goals, the best step to take might not involve taking greater risks. Investing harder doesn’t make sense if investing this way doesn’t align with your risk tolerance. Thankfully, you can take other, more risk-averse approaches alongside prudent, long-term investment.
According to von Borstel, a combination of the following four strategies should help you position your finances better:
- Spending less.
- Saving more.
- Considering a later retirement.
- Building a personalized, diversified investment portfolio.
Wayne von Borstel On The Value Of Strategic Investment
Investment is a key pillar of most financial plans, but it’s important to invest your assets according to a clear strategy based on factors such as your risk tolerance, time horizon, and goals.
von Borstel explains that risk can bring a return when:
- You are prudent.
- You are systematic, unemotional, and diversified in your approach.
- You have a long-term mindset.
Expert investment management from dedicated, knowledgeable advisors, like the team at von Borstel and Associates in Oregon, can help you build and maintain a portfolio that aligns with your needs and gives the greatest return for your risk tolerance. This plan should involve crucial elements such as an emergency fund or a conservative bucket.
How Can You Align Expectations With Reality?
For each investor, finding the right balance between risk and reward is critical. An important factor in choosing the right risk level for you is ensuring your expectations match reality.
This means understanding how hard you want to work to set aside appropriate funds and what you are willing to accept in the event of potential investment outcomes. von Borstel notes that we don’t always need to strive for more and that, sometimes accepting less is a good choice.
When Does High-Risk Investment Make Sense?
Investing more aggressively makes sense if this style of investing fits your outlook and you have a long-term perspective. How will you know if an aggressive, high-risk approach to investment suits you? von Borstel says you’ll have a “gut instinct.”
And how long is “long term?” The financial expert advises that looking 10 years ahead isn’t long enough and that most people should be thinking about investment over a lifetime. Some are even looking past their lifetimes and investing for the next generation: von Borstel describes clients in their eighties who are investing for their grandchildren.
von Borstel emphasizes that we should take risks armed with knowledge, which comes from understanding:
- Why you are investing.
- How the investment aligns with your risk tolerance.
- What the investment will bring to your financial plan in the long term.
Bringing these elements together can mean a greater chance of success when taking risks and better financial prospects overall.
More About Wayne von Borstel In Portland, Oregon
Wayne von Borstel is a wealth expert and author with almost four decades of expertise in the US financial sector. He divides his time between his firm, von Borstel and Associates (which has offices in The Dalles and Portland, Oregon); assisting local, national, and international financial organizations; and philanthropic work.
von Borstel’s interest in finance began in his teens when his grandmother allowed him to invest on her behalf. He launched his career in 1985, providing financial advisory services to families and wealthy individuals. After 10 years as a representative for Mony Mutual of New York and 19 years as a representative for LPL Financial, von Borstel founded the Northwest Planned Giving Initiative, followed by von Borstel and Associates.
In addition to his master’s degree in financial services, which he earned at The Graduate School of Financial Services (The American College), von Borstel is a Chartered Financial Consultant (ChFC), Certified Financial Planner (CFP), and Chartered Life Underwriter (CLU).
von Borstel and his wife Marta share a passion for creating educational opportunities for underprivileged children. The couple has sponsored the development of schools in Afghanistan, Bangladesh, Canada, Honduras, Nepal, and Sudan.
The von Borstels volunteer at the schools in India and Papua, engaging with the teachers and communities the schools serve. They also volunteer at an orphanage in Medan, Indonesia, which they financially support. The orphanage houses hundreds of kids who lost their friends and families due to the 2004 tsunami.