EP 128 | Understanding the Role Risk Plays in Your Investment Strategy

EP 128 | Profit Boss® Radio

Welcome to episode 128 of Profit Boss® Radio! Today’s episode is an important conversation we need to have about money, and more specifically about investing.

As a Profit Boss®, you recognize that building financial success takes a series of smart steps over the course of days, weeks, months, and years. It’s one thing to have a want to build wealth – to understand you need to invest your money to grow it. But, understanding, conceptually, how risk is a necessary tool to help you do that is another. That is why today’s episode is dedicated to helping you understand investment risk and how to get comfortable with it as a wealth-building tool.

Spoiler alert! Risk is not the big, bad, scary, dangerous thing you may think it is. There is a massive amount of miseducation about risk. So, that’s what we’re talking about today.

Tune in today’s episode as I briefly cover what’s happening in the investment markets that has people really thinking about the amount of risk they are exposed to, before switching gears to talk about the evergreen principles of risk. Even if you’re listening to this episode much later than December 2018, these facts about the markets hold true; but moreover, the lesson about risk is still 100% applicable to you and how you can use it to build wealth over the long-term.

Cheers to your financial aptitude ladies. Let’s jump in!

What You’ll Learn from This Episode

  • What the complete definition of “risk” is and why our commonly-held beliefs about it are wrong
  • Why now is such an appropriate time to discuss risk and understand it fully
  • A brief history lesson about the markets, past market performance, and how often we experience bull and bear markets, and market corrections
  • 3 facts about the markets that every investor should know about
  • The instances that do put you at too much risk for loss
  • What you can do to minimize risk and maximize potential reward
  • Why your investments should be diversified and appropriately allocated and how these investment choices work with risk to build wealth
  • A discussion about “risk tolerance” and why it is a completely useless measurement by certain investment managers
  • Why you need risk in your investment strategy to build wealth and reach your financial goals
  • Hear a couple of real-life cautionary tales about how two different investors misapplied risk to their investment decisions
  • 6 questions you need to ask yourself to find out if you should be doing something different with your investments

Related Episodes and Blogs

Call for Listener Stories

Hey Profit Boss® Radio listeners! 2018 is rapidly winding down and I’m preparing a special episode that celebrates you! But, this special episode requires your help.

  • If you have crushed a specific financial goal, I want to hear from you.
  • If you’re thankful for something that has happened in your financial life or career, I want to hear from you.
  • If you are making big plans for 2019, I want to hear from you!

Your financial success is possible and so many of you are already making that a reality! So, don’t keep your wins to yourself! Share them with me so that I can air them in a special year-end episode of Profit Boss® Radio.

Email your audio clip to [email protected]. And we’ll be in touch if we plan to air your story in a few weeks! Thanks, ladies!


And let’s not forget that this show is powered by you and your stories and questions. Every month I’ll be doing an #AskHilary episode where I answer listener financial questions.

  • So, what’s that top of mind money question that’s been pinging around in your brain?
  • Where have you been stopped?
  • What have you been arguing with your spouse or significant other about?
  • What tip or tool aren’t you sure about?
  • Do you have questions about saving? Spending? Budgeting? Investing?

Pick up your mobile phone right now. Yes, right now. And open your voice recorder app. Yep, go ahead and open that app and record yourself asking me that question. Just say your name, first name only is okay, and then what city you’re from, and then ask away.

Anything you want to ask. And once you’re done recording, export that beautiful little recording and email it to [email protected]

I can’t wait to hear your questions!

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Hendershott Wealth Management, LLC and Profit Boss® Radio do not make specific investment recommendations on Profit Boss® Radio or in any public media. Any specific mentions of funds or investments are strictly for illustrative purposes only and should not be taken as investment advice or acted upon by individual investors. The opinions expressed in this episode are those of Hilary Hendershott, CFP®, MBA.