RJ Hamster
Boost Your Investing Performance in Three Simple Steps
 Delivering World-Class Financial Research Since 1999 Editor’s note: If you want to improve your investment gains, you need to think about risk.According to Retirement Millionaire editor Dr. David “Doc” Eifrig, adding an appropriate amount of risk to your investments can greatly improve your portfolio performance.So in today’s Masters Series, adapted from the December 30, 2025 issue of the DailyWealth daily e-letter, Doc shares a three-step guide to help assess your risk tolerance – and set yourself up for high returns…Boost Your Investing Performance in Three Simple StepsBy Dr. David Eifrig, editor, Retirement MillionaireI dread this question…”What should I buy today?“There’s no good answer…Without knowing your goals, risk tolerance, and a dozen other factors, my response is almost irrelevant.Unfortunately, many investors don’t fully understand their risk tolerance. That has severe consequences.If you’re new to investing, you may lack the confidence to take risks. Maybe it has even kept you from investing at all, and you’ve missed out on the incredible gains from the current bull market.Here’s the thing… Adding an appropriate amount of risk to your investments greatly improves your portfolio performance.So today, I want you to assess your own risk tolerance. And I’ve included a three-step guide below to get you started…Recommended Links:The Official Stansberry Research Game Plan for 2026On Tuesday, January 27, five of Stansberry Research’s most senior experts are stepping forward to unveil their biggest buy call of 2026. It’s a single, crucial money move we’re urging ALL our subscribers to make this year that could double your entire portfolio without taking any big risks. Get the full details right here.The Most Lucrative New Trading Opportunity in Two DecadesDays from now, a colossal event could set off the biggest market move since last spring, opening the most lucrative trading opportunity in two decades. It’s a “blink and you’ll miss it” moment that could double your money repeatedly as it unfolds, as our corporate affiliate TradeSmith saw 13 times last year with official picks before, during, and after the tariff crash. Click here to learn more.First, let’s talk a little more about how to think about risk…In the market, risk is measured by volatility. The more volatile an investment, the more its price swings up and down.That’s why stocks are much riskier than bonds or money-market accounts. Their prices are more likely to fluctuate. You stand to make a lot more money as a stock moves up, but you could also lose more when it falls.If you’re taking on too much risk, your portfolio could take a big hit… especially if we enter a bear market.Meanwhile, if you’re entirely risk-averse, you could miss out on the investments most likely to see major upswings.Let’s review the common investment vehicles and where they fall on the risk spectrum:As you can see, the least risky investments are cash and cash equivalents, like certificates of deposit. These are usually extremely stable investments, but they offer low yields.Generally speaking, stocks are the riskiest investments. They are the most volatile, but also produce the biggest gains.So when considering how much to invest in each asset class, start with a few simple questions. Write down your answers and keep them for reference whenever you make future investing decisions.In fact, it’s a good idea to review your plan and risk level each year. Consider the following:How close are you to retirement?A popular theory is the “100 minus age” rule. Take your age, subtract it from 100, and that’s the percentage you should invest in stocks. That means a 35-year-old woman should have about 65% of her portfolio in stocks.The idea is that the younger you are, the more time you have to recover from losses. So you want to take on more risk earlier.However, this is still a general guideline. Everyone needs to determine how comfortable they are with risk. That’s why we need to answer two more questions…What is your primary investing goal?Are you looking to preserve your wealth, generate income, or grow your investments? These choices represent different levels of risk as well.For example, if you want to generate income, buying dividend-paying stocks will yield more than a typical savings bond. So you’ll want to account for that increased risk.One solution: Consider multiple accounts.We know a few folks have both a conservative “retirement only” account and a trading account where they take on more risk. This is a great way to potentially earn big gains without doing damage to your retirement nest egg.How much are you willing to lose in a one-year period?Before investing in anything, figure out how much you are comfortable losing and write it down. If you don’t want to risk much, opt for less risky investments.Also, be disciplined about selling an investment if it falls by that amount… That’s how you keep losses from growing larger than you can handle.These three guidelines are just the beginning of understanding your risk tolerance… But they’re a good place to start. So ask yourself these questions today. It’s one of the surest ways to improve your investing performance.Here’s to our health, wealth, and a great retirement,Dr. David EifrigEditor’s note: Between the AI boom, high inflation, and geopolitical turmoil, navigating today’s market chaos requires a great deal of preparation. But many investors don’t have time to keep up with all the headlines across the markets.That’s why five of Stansberry Research’s top experts are hosting a broadcast on Tuesday, January 27 to lay out a complete game plan to help you thrive throughout 2026 – including their top individual stock picks for the year.Click here to reserve your spot…You have received this e-mail as part of your subscription to Stansberry Digest. If you no longer want to receive e-mails from Stansberry Digest click here.Published by Stansberry Research.You’re receiving this e-mail at pahovis@aol.com. Stansberry Research welcomes comments or suggestions at feedback@stansberryresearch.com. This address is for feedback only. For questions about your account or to speak with customer service, call 888-261-2693 (U.S.) or 443-839-0986 (international) Monday-Friday, 9 a.m.-5 p.m. Eastern time. Or e-mail info@stansberryresearch.com. Please note: The law prohibits us from giving personalized financial advice.© 2026 Stansberry Research. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Stansberry Research, 1125 N Charles St, Baltimore, MD 21201 or stansberryresearch.com.Any brokers mentioned constitute a partial list of available brokers and is for your information only. Stansberry Research does not recommend or endorse any brokers, dealers, or investment advisors.Stansberry Research forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Stansberry Research (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation.This work is based on SEC filings, current events, interviews, corporate press releases, and what we’ve learned as financial journalists. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. |
