close

Risk Controlled Portfolios

Controlling Expenses

Spending and expenses play a role in investment success as well.

Particularly for institutional investors and retired individuals, spending rates need to be taken into account when determining the amount of risk and return you seek. On the one hand, excess risk seeking a high return can lead not only to larger potential negative outcomes, but also to more volatile returns. On the other hand, lower returns from less volatile investments may not keep pace with inflation and investors’ spending requirements.

Understanding the underlying expenses in your portfolio is another way of controlling risk.