Risk management can help our clients ensure that they make the best decisions possible. We want to have personal conversations about your priorities so that we can craft a portfolio that will help you accomplish your goals. However, it is important to first establish your own understanding of the risks you are willing to take with your money. Afterwards, you can utilize these smart choices to discover your Risk Number and achieve success!
Three Categories of Risk:
Risk Required
This is the level of risk you will need to take in order to reach your goals. It is a minimum amount of risk that must be measured to reach financial benchmarks and life accomplishments. How much risk do you need to take with your investments in order to get what you want in return?
Risk Capacity
This is the maximum amount of risk that you can afford to take. A market collapse could disrupt your financial plan. Have you considered a plan that will protect your investments in a downturn? How much risk are you able to withstand?
Risk Tolerance
This is the amount of risk that you are able to handle emotionally. Can you endure the ups and downs in the marketplace? Are you emotionally capable of managing major changes or do you sweat the small swings? How do you feel about the way your investments are working for you?
Each type is important, but they must be used in combination to discover your exact levels of comfort and control as they pertain to your financial plan. The established Risk Tolerance is the only category involving your emotions. It gauges the amount of market volatility that will make you COMFORTABLE. Now that level of comfort can be measured with Riskalyze. Click Here to watch a quick video on how Riskalyze works for you!
One of the most difficult decisions clients face when it comes to their investments is whether to engage in high-risk activity for a greater return, or to take the more conservative path. You may see yourself as a conservative investor? Maybe you are an aggressive investor? Perhaps you are a balanced investor somewhere in the middle?
Weston Banks has chosen to partner with Riskalyze so that our clients have access to the tool that objectively quantifies your Risk Tolerance. This technology assigns a numerical value to a client’s risk tolerance, providing them with greater awareness of their comfort levels, and enables the advisor to better understand the client’s boundaries. This assigned value is measured in the form of a Risk Number given to you as a result of the personalized quiz. The results of the quiz will provide projections for the potential gains and losses we should expect over time in the best and worst-case scenarios (financial crisis and recovery) within the framework of your desired Risk Tolerance. This quiz gives us the ability to see what a particular market correction might do to your portfolio. You’re going to love the way Riskalyze empowers you to become a fearless investor. Why leave your retirement goals up to chance when we have your risk management broken down to an exact science?
As soon as you have established your Risk Number, we can begin to create a portfolio that best matches your comfort level. Managing risk is our business so let’s find your Risk Number together and accomplish the goals you deserve!
Please email your thoughts and questions to help@westonbanks.com or give us a call at 919-783-8500. Follow us on social media for more interesting content or visit our Weston Banks Wealth Partners website to see how we will work together for significance.