Client Resouces

Risk Tolerance

What is Risk Tolerance and why it is a critical component in a successful financial journey.

  • Risk tolerance is the degree of variability in investment returns that you are willing to withstand. It is imperative you have a realistic understanding of your ability and willingness to stomach swings in the value of your investments.
  • Risk tolerance also involves Risk Capacity, which identifies the amount of risk you can afford to take. This can differ greatly from the risk you are willing to take. In other words, you may be comfortable with the long term results of an aggressive, high-risk portfolio but if you have only a few years to reach your investment goal, it may not be appropriate for you.
  • The Grable & Lytton Risk Assessment Questionnaire was created in 1999 by Dr. John Grable and Dr. Ruth Lytton. It has been in continuous use since then, has been taken by investors hundreds of thousands of times, and has been repeatedly studied for validity.
  • By having a good assessment of your Risk Tolerance along with a current Investment Policy Statement, we are able to design, implement, monitor and dynamically manage your investments to meet your goals, objectives and assure a successful financial journey.

 

What’s your risk tolerance?

CLICK HERE for your FREE Risk Tolerance Profile!

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Not subject to control by others or affiliated with a controlling entity.

Investment Advisor Representative

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Investment Advisor Representatives have a fiduciary duty to their clients, which means they have a fundamental obligation to provide suitable investment advice and always act in their clients' best interests.

Fiduciary

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A fiduciary acts on behalf of another person or persons to manage assets and owes to another the duties of good faith and trust. The highest legal duty of one party to another, it also involves being bound ethically to act in the other's best interests.