What does risk tolerance really mean?
If you were going to climb a mountain, how would you get to where you want to go? Would you climb directly to the top using a harness and rope? It may be the quickest way, but it’s not without some risk. Maybe you’d prefer the indirect route with a slow and steady climb to the peak.
Investing has a lot in common with climbing a mountain. There are many ways to tackle it depending on your level of comfort. You may start out with one approach and then change your risk profile as you learn more about the investing process. Or you may choose a middle of the road approach, taking some risks while balancing them with other investment ideas.
The reality is that all investments carry uncertainty, but the biggest risk of all is not understanding the approach that’s right for you.
Don’t wonder if your risk preference will allow you to pursue your goals – acquire your probability and build a map towards success. We utilize advanced technology called RISKALYZE to create retirement maps to communicate your big picture.
Capture Your Risk Number: The first step is to answer a 5-minute questionnaire that covers topics such as portfolio size, top financial goals, and what you’re willing to risk for potential gains. Then we’ll pinpoint your exact Risk Number to guide our decision-making process.
Align Your Portfolio: After pinpointing your Risk Number, we’ll craft a portfolio that aligns with your personal preferences and priorities, allowing you to feel confident with your expected outcomes. The resulting proposed portfolio will include projections for the potential gains and losses we may incur over time.
Define Your Retirement Goals: We will also review your progress toward your financial goals by building a retirement map. When we are finished, you’ll better understand what we can do to help increase the probability of reaching your financial goals.
Are you ready to climb your mountain? Give us a call today to schedule a time we can walk you through your Risk Number!
There is no assurance that any financial or investment plan or strategy will be successful. Investing involves risk, including the possible loss of principal. (02/21)