Understanding your risk tolerance levels are vital to your portfolio

When financial markets are trending up and we are in a “Bull Market” it seems like everyone is willing to take on a little more risk in their portfolios to help capture some of the upswing.

However what would happen if we are in a “Bear Market” and the markets were dropping?  What would happen to your Risk Tolerance level now?

Chances are you are probably a little less likely to assume greater risk when markets are not doing so well.

In fact, life events happen that also change our Risk Tolerance levels.  Even as we age our tolerance changes and often times we have seen that people maintain the same level of Risk Tolerance in their employers 401(k) program as when they first signed up for it.  They may have signed up for aggressive growth but over the course of the past 20 years they are no longer wanting to assume the same level of risk associated with that type of portfolio.

We have a complimentary Risk Assessment program that can help you determine what level of Risk you are willing to assume TODAY.  Maybe your risk is the same as your portfolio or maybe it’s not?  That is another reason to have us take a Second Opinion look at your portfolio once you finish your Risk questionnaire to see if your goals line up with your current advisors.