Risk Tolerance
January 19, 2023
You are probably already aware that your risk tolerance measures how much market volatility your investments can withstand – but when was the last time you reassessed your risk tolerance?
One thing we know for sure about the stock market is that it is unpredictable. The devastation a market downturn can cause only increases the closer you get to retirement. Factors that impact your risk tolerance measurement include your age, investment goals, and income.
If you are decades away from retiring and have the income to do so, you can likely take a more aggressive approach with added riskier investments. If you’re midway through your working years, it might be time to begin reigning in your risk with a more moderate approach. A more conservative approach should come when you are close to retiring so as not to lose what you’ve worked hard to build. Finding the right balance can help set you up for future success.
This is a reminder to check in with your financial professional regularly to reassess your risk tolerance. We understand this can be a lot to keep track of, which is why we are here to analyze your financial situation and make necessary adjustments. Please contact us to ask any questions or schedule a complimentary consultation.
We look forward to helping you!