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Most people do not like to hear the word “risk” anywhere near the word “finances.” Nevertheless, risk and reward are closely correlated. On average, markets reward investors who accept more risk. On the other hand, lower risk investments may yield smaller returns, but also assure smaller losses. Successful investors understand this relationship and build portfolios that reflect their personal tolerance for risk. Creating this balance in your own investment portfolio will ensure you can stand by your investments in every kind of market.

No bull markets last forever. While, by some measures, we are in the thick of the longest bull market in history, the end always comes. So, investors must always be prepared for bear markets, both emotionally and within their portfolios.

At TrueNorth Wealth, we know that, for long-term investors with appropriate diversification and portfolio construction, bear markets can actually be quite beneficial, if handled appropriately. Consider these four ways to manage the next bear market like a pro, whenever that may be.

We have all heard grandparents talk about the “good old days,” when a gallon of gas only cost a quarter and you could buy candy for a penny. How times change. In just the last half-century, the price of living has risen an average of 3.8% each year.*

Your financial advisor should be capable, experienced, and properly trained. Most importantly,  they should be ethical and worthy of your trust. That’s an extremely hard qualification to identify with exactness, but an effective substitute is to make sure that your adviser’s incentives align with yours.

So, as you look for a financial advisor, you should first investigate how they receive compensation for their services. There are three primary methods of compensation in finance: commission-based, fee-based, and fee-only.

As a financial advisor, I often experience older clients expressing concerns about whether or not their heirs will be taxed on inheritance money. These clients remember that when their own parents passed away, they received a direct check and were not required to pay taxes on that income.