It’s impossible to invest (wisely anyway) without understanding what’s required to reach your financial goals. That’s what we all want right? To reach and enjoy our financial goals! We may say we want X.XX% return, or the next hot IPO. We may boast of owning the hot new fund, or buying emerging market debt at the bottom. These investing strategies may accomplish your goals, or leave you penniless at the mission with a soup cup.
In reality, we all just want to reach our financial goals so we can enjoy life. Retire when you want, retire the way you want, spend as much as your finances will bear all while making sure you’ll never run out of money.
What risk tolerance you’re comfortable with alone will suffice if you have more money than you can spend! If you’re like the rest of us however, your risk capacity and risk required aren’t just important, they’re far more critical than your risk tolerance.
Retirement planning must be based on all three factors to some extent. One or two alone can easily leave your financial success to chance.
What’s Your Risk Number? The first step is to answer a 5-minute questionnaire that covers topics such as portfolio size, top financial goals, and what you’re willing to risk for potential gains. Then we’ll pinpoint your exact Risk Number to guide our decision-making process.