Your Risk Can Be Calculated (NAPSA)—Duringthe pastyear, many investors cameto realize that they never really understood the risks they were taking when they invested in stocks or mutual funds. Most people understand that risk is a part of life, that everything we do involves risk. We learn to manage risk and balance the particular risk against the reward—such as looking both ways before crossing the street. But when it comes to investing and ourfinancial future, most of us don’t understand the various risks we need to consider. The Forum for Investor Advice has just reissued its popular brochure Understanding and Managing Investment Risk, a simple guide that describes how working with a financial advisor can help an investor to understand investment risks and proceed to make strategic investment decisions. A professional financial advisor, for example, can walk an investor throughthe five-step risk management process described in the booklet. The steps are: identify risks, understand risks, develop strategies to control risks, evaluate the risk/reward tradeoff, and make yourdecision. The booklet demonstrates how, in dealing with investmentrisk, you can use the sameprocess that you have used successfully to understand and manage the wide rangeofrisksinlife. Single copies of the risk brochure are available free to investors by calling toll-free 1800-200-1819. The Forum for Investor Advice is a Bethesda, MD non-profit association that aids the public in understanding the role and value offull-service financial advisors.
