Paragon Wealth Management Gave Conservative Investors Tips on what to do in a Low Interest Environment

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Paragon Wealth Management, a registered investment adviser, advised conservative investors to think twice before investing in CDs or money market funds.

Dave Young, President and Founder of Paragon Wealth Management

Dave Young, President and Founder of Paragon Wealth Management

“Savers can either stay ultra conservative, and watch their savings go down each year or take a little more risk in order to get higher returns,” said Dave Young, president and founder of Paragon Wealth Management.

Paragon Wealth Management, an investment firm in Utah, advised conservative investors to think twice when investing in CDs or money market funds.

“Investors who save money in CDs and money market funds don’t have a lot of options right now,” said Dave Young, president and founder of Paragon Wealth Management. “With inflation rates at three to four percent and interest rates between 0.5 and 1.9 percent, savers are actually losing money in their "conservative" accounts.”

Ben Bernanke, chairman of the Federal Reserve, said they will keep interest rates this low until sometime in 2014.

“Savers can either stay ultra conservative, and watch their savings go down each year or take a little more risk in order to get higher returns,” said Young. “On a one to 10 risk scale, with 10 being the most risky, I believe that many investors would benefit by slightly moving up the risk scale. If they move from a level of one to a three or a level of three to five they could potentially, significantly increase their earnings. On the other hand, investors shouldn’t jump from very low to very high risk. That is usually when you see problems. Sometimes investors get tired of earning one percent, so they quit and move over into something extremely aggressive that promises a 20 percent return.”

Young cautioned investors not to get extremely aggressive and invest in things they don't understand, because that is often when they lose everything.

“It is important for investors to determine their asset allocation based on their individual risk tolerance,” said Young. “This will help them stay invested over the long-term and optimize their investment choices.”

Paragon Wealth Management offers complimentary portfolio reviews for investors to give them a second opinion on their investment portfolios and to determine if they are allocated according to their risk tolerance. Investors can call 800-748-4451 to schedule a portfolio review.

About Paragon Wealth Management

Paragon Wealth Management is a registered investment advisor (RIA) in Utah that actively manages all types of traditional and retirement accounts such as IRA and 401(K) rollovers, and pensions and trusts. Paragon has received numerous awards such as the Best of State award in Investment Advisory Services in 2011, and the NABCAP Premier Advisor award in 2010. Paragon has also been recognized on several lists such as WealthManagerWeb's Top Wealth Manager's list in the U.S. in 2010 and others. Call 800-748-4451 or visit paragonwealth.com for more information.

Paragon cannot guarantee the accuracy of information from other sources. Opinions are as of the dates indicated only. This report is not a solicitation for any security. Past performance is not a guarantee of future results. Investments in securities involve the risk of loss. Do not rely upon this information to predict future investment performance or market conditions. This information is not a substitute for consultation with a competent financial, legal, or tax advisor and should only be used in conjunction with his/her advice.

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