Stock prices are by their very nature volatile. And they are also very easily converted into cash, a real benefit. Depending on your financial circumstances, volatility is not to be confused with risk. Stocks are not inherently risky, even though they are volatile. While volatility can be measured and dealt with as a statistical phenomenon, risk is of a different set.
Risk is an interpretation or assessment that a person makes about a given set of circumstances.
Most of us believe that circumstances about which we know little are risky, i.e. we have difficulty accurately predicting the outcome of a set of actions. Bonds and other fixed investments are less volatile in the short-run but have more volatile results in the long run. While this might seem counterintuitive, please note that fixed investments in the long run have always under performed a well-diversified portfolio of common stocks. Our aim is to satisfy your short and long term goals with a portfolio of common stocks and money market funds, a strategy we believe is the optimum for achieving and maintain financial independence despite the volatility of such a strategy in the short-run. We have successfully become re-registered with the Securities and Exchange Commission as a nationally significant investment advisor.