1. Hornstein Investment Group Offering Complete Wealth Management Services Steve H. Hornstein, Esq., CPA, LL.M., CFP  Evan Press, Candidate for CFP  Certification 20335 Ventura Blvd., Suite 203 Woodland Hills, CA 91364 Office: (818) 887-9401 Toll-free: (888) 280-8100 Fax: (818) 887-7173 Steve@HornsteinInvestmentGroup.comSteve@HornsteinInvestmentGroup.com Evan@HornsteinInvestmentGroup.comEvan@HornsteinInvestmentGroup.com www.HornsteinInvestmentGroup.com Steve Hornstein is a Registered Representative with and Securities are offered through LPL Financial. Member FINRA/SIPC

2. Understanding Investment Risk What is Risk? How much Risk can you take? What is Volatility? When should you be concerned about Volatility? How much Volatility can you take? Some Investing Implications.

3. What is Risk? Risk is not reaching your goal. Risk = Permanent loss of money. Needing money and not having it.

4. How much Risk can you take? It depends….. What happens if you do not meet your goal? When do you need the money? Your Age. Emotions – Risk Tolerance. Investing Experience. Ability to earn it back.

5. Does Risk = Volatility? Many people define Risk as Volatility. But Risk and Volatility are different.

6. So then what is Volatility? Volatility is the fluctuation in the value of your investment – the short-term ups and downs. It’s importance depends upon your time horizon, that is, how soon do you need the money.

7. When should you be concerned about Volatility? Volatility is more of a concern when you have a short-term time horizon. Volatility is not as large a concern if you have a long-term time horizon. When you have a long-term time horizon inflation becomes a concern.

8. How much Volatility can you take? Again, it depends…… Time Horizon. Your Age. Emotions – Risk Tolerance. Investing Experience. Time and/or ability to earn it back.

9. Some Investing Implications For a shorter-term time horizon, use more bonds to dampen volatility. For a longer-term time horizon, use more equity to protect against inflation. As your time horizon changes, adjust your portfolio. You want to avoid converting short-term volatility into a permanent loss.

10. Retirement In Retirement, you face both Volatility issues and Inflation issues. You need money now and for the next 20 to 30 years. So you need to invest in both bonds and stocks.

11. Hornstein Investment Group Offering Complete Wealth Management Services Steve H. Hornstein, Esq., CPA, LL.M., CFP  Evan Press, Candidate for CFP  Certification 20335 Ventura Blvd., Suite 203 Woodland Hills, CA 91364 Office: (818) 887-9401 Toll-free: (888) 280-8100 Fax: (818) 887-7173 Steve@HornsteinInvestmentGroup.comSteve@HornsteinInvestmentGroup.com Evan@HornsteinInvestmentGroup.comEvan@HornsteinInvestmentGroup.com www.HornsteinInvestmentGroup.com Steve Hornstein is a Registered Representative with and Securities are offered through LPL Financial. Member FINRA/SIPC