The Baltimore Sun: Debt-Ceiling Debate

Debt-ceiling debate, market downslide test investors’ appetite for risk

For risk-averse, it’s a good time review your portfolio.

Christopher Parr is quoted in this article, which discusses how to manage risk in your portfolio.

“If it is for short-term purposes — within the next year or up to five years — that money shouldn’t bounce around a whole lot,” says Christopher P. Parr, a Columbia financial planner. “You need to have it protected.”

Instead of the stock market, money to be used within five years should be in a savings account, money market fund, certificate of deposit or, if you have a few years to invest, a short-term bond fund. Sure, you won’t be happy with the piddling earnings, but that’s not the point.

“It’s not about making money,” Parr says. “It’s making sure it’s there to meet goals.”

Read the full article here.