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What is your risk tolerance?
Losing sleep at night over your investments is a high price to pay for an increase in potential returns. While no one likes to see a decline in portfolio value, some people can psychologically handle challenging markets better than others. By selecting a portfolio suitable to your risk tolerance, we can help you avoid damaging, emotionally driven investment decisions. Statistics show that investor outflows from stock funds tend to peak at market bottoms, while inflows peak at market tops. This “buying high, selling low” behavior severely damages long term investor returns.
To measure your personal attitude toward risk, we use a carefully tested risk profiling tool with our clients. If there are two of you, each would take the short survey involved at your convenience. Depending on the results, we may have to further discuss goals and investment strategy before making portfolio recommendations, as your goals and risk tolerance may require some type of compromise.
