Manage Risk and Build Weatlh



Photo provided by The Randolph Company

 

Uncertainty is a force that can build anxiety, cause fear and lead to avoidance, especially when it comes to investing in the stock market. However, Carter F. Randolph, president of The Randolph Company, says avoiding stock market investment altogether can be equally risky.

“Everyone should realize that investing involves risk, and one of the more overlooked risks is purchasing power, or the ability to keep up with the rising costs of everyday life over the long term,” Randolph says. “When this is considered, not investing can be as risky to your wealth as investing.”

Financial advisors at The Randolph Company simplify their investment strategies to help their clients gain understanding and build portfolios that give their clients peace of mind.

“Our clients’ needs come first,” Randolph says. He answers some of the most common questions he hears from prospective clients:

 

LEAD Magazine: Why should I retain The Randolph Company to invest my money?

Carter F. Randolph: We truly believe that our success comes from your success. Investors should seek an investment advisor who demonstrates honesty and integrity and who abides by the fiduciary standard of putting the client first. The Randolph Company exhibits these essential qualities to clients by explaining our investment management philosophy and processes. We follow common-sense rules of portfolio management and maintain a transparent investment management and trading fee schedule. Additionally, The Randolph Company has more than 20 years’ experience working with high-net-worth individuals, foundations and trusts. Our clients can feel confident their investments are in capable hands. 

 

LEAD Magazine: What can someone expect from The Randolph Company?

Carter F. Randolph: Everyone has different expectations when it comes to investing and selecting an investment advisor. At The Randolph Company, a client can expect a priority of their best interests, a personalized investment strategy, and consideration of all involved risks. We focus on building and maintaining an advisor-client relationship so we are prepared to guide our clients and their wealth through all stages of life. By building these relationships, we can act quickly if any unexpected life events arise and adjust the investment strategy accordingly.

Our clients can also expect that every investment decision we make is based on thorough research and with their best interests in mind. Our investment strategy takes into consideration all risks, including purchasing power risk or inflation risk. Many times, risk analysis only covers the risk of stock and bond selection and ignores purchasing power. Investors may want to select investments they perceive to be “lower risk,” but may forget to account for the deteriorating effect inflation causes on their real wealth. We make sure our clients understand all risks associated with investments to ensure that their investments are aligned with their desired outcome.

 

LEAD Magazine: I am afraid of stocks and want to invest 100 percent in bonds. Is that a bad idea?

Carter F. Randolph: Avoiding stocks and investing everything in bonds may not be the best solution for growing and maintaining your wealth. Traditional risk analysis often ignores purchasing power or inflation risk that can have significant impact on real wealth. One reason that bonds can be an attractive investment is that they provide a fixed current return or yield that does not change over time, but a bond’s value can increase or decline rapidly with changes in interest rates and inflation expectations – something that many investors are not ready for. Stocks, however, can provide a current yield through dividends, which can grow to offset some of the risk of inflation. For each investor, a full understanding of all risks associated with stocks, bonds and purchasing power will lead to a balanced approach and a diversified portfolio.

 

LEAD Magazine: Can a portfolio be over-diversified?

Carter F. Randolph: Yes, it can be. The purpose of diversification is to moderate or lessen some of the risks associated with a portfolio. Not enough diversification places excess risk in the portfolio. Too much diversification can reduce an account’s performance and increase its cost, resulting in “diworsification.” At The Randolph Company, we use diversification strategies that are maintainable and employ common sense to manage all risks associated with wealth management.

 

The Randolph Company is located at 4200 Malsbary Road, Blue Ash, OH 45242. For more information, call 513. 891.7144 or visit www.therandolphcompany.com.