Does your financial planner dare utter the “R” word?


It’s risky not to talk about risk.

Does your financial adviser explain the risks associated with each product they sell you?

Or do they let you sift through the fine print and figure it out for yourself?

At Cadinha & Company we don’t sell products, so there is no fine print. And, we’re not afraid to bring up the topic of risk with our clients. Because risk is a consideration in everything we do, we think about it all the time. In fact, in order to manage your money, we manage something else first: risk.

What about risk as it relates to asset allocation?

Risk shows up all over the place: in the price of a stock, in the business model and management of a company, in the time horizon of a bond, in the solvency of its issuer, in the annual fees a client has to cover before seeing a gain and in the cost of taxes. These risks not only need to be assessed individually, but also according to how they might affect your portfolio taken together.

Does your financial adviser study macroeconomic trends that affect risk?

Cadinha thinks about risk asset-by-asset and from a big-picture perspective that includes myriad macroeconomic factors that shape risk.