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See how this veteran advisor helps clients comprehend why you can't use value at risk or a bell curve to predict the risk that's built into their 401(k), IRA, or any other portfolio: you can't forecast severe market swings any more than you can predict the intensity of a wildfire or other natural disaster.
What is the maximum tolerable loss that could occur within a given period of time? When clients and prospects want to know about the risk embedded in their portfolio, explain that there's not much we can do about the current market upheavalwhat we can do is take every precaution that allows us to cope with the surprises.
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