A: Most of our clients are investing for retirement, so the biggest risk we have to manage is to make sure that there is no permanent loss of capital. We are also concerned about their future cash withdrawal needs and how inflation is expected to affect their portfolios.

The other significant risk is market volatility. Investors are human and they tend to react to headline news with emotions. For instance, they may decide to sell their holdings at a time when the stocks are out of favor. One of our goals is to educate clients that markets are inherently fragile and prepare them for the market volatility. In fact, volatility can also be our friend and can take advantage of the market gyration to add selectively in the portfolio.