Understanding Losses
Maximum Allowable Loss — This tool helps you understand when investment losses are too much for you to recover from. This figure is based on your goals and your expectation for market behavior in a recovery, not on your psychological risk tolerance.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
The calculations of this tool are based on numerous assumptions, many of which may or may not be applicable to you or your situation. please contact us for a complete list. Calculator based on Parker, FJ (2014). “Quantifying Downside Risk in Goal-Based Portfolios” Journal of Wealth Management, 17(3), pp. 68-77. DOI: https://doi.org/10.3905/jwm.2014.17.3.068.
This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment from Directional Advisors to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own financial professionals, if any investment mentioned herein is believed to be appropriate to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yields are not reliable indicators of current and future results.
