By now my regular readers have an understanding of my investment philosophy: I am generally risk-averse. More specifically, as a financial planner, I am typically looking at identifying what our needed targeted rate of return is, and then figuring out how to achieve it with the least amount of risk.
This is generally the opposite approach to what most investors do subconsciously: figure out how much money they are willing to risk/lose, and then let the roulette dictate how much ROI they may get.
This approach to investing is why with many clients in 2007