How do you overcome financial uncertainty? You don’t (for most people).
If you want to reap the rewards of the stock market, then you will always have to live with some element of financial uncertainty.
If you invest all your money in bank certificate of deposits or US Government Bonds, you will have minimal risk and be rewarded with minimal returns (and really, a negative real return, after taxes and inflation). Otherwise, you cannot completely overcome financial uncertainty. This is a simple, but true concept.
The role of a good financial advisor is to assist you in dealing with this financial uncertainty, so you can become comfortable with the uncertanties of the world, and financial markets, specifically.
More in part II.
This post is prompted by the the @projectdomino writer’s challenge. Today’s prompt: Overcoming Uncertainty. “Nothing can bring you peace but yourself. Nothing can bring you peace but the triumph of principles.” Ralph Waldo Emerson.
This a part of a challenge for bloggers and writers to post, which began on May 31. I will receive a prompt, or idea, from them each day, which may be the basis for that day’s post. For more information on this, see my first post on May 31, 2011.