The second step of our investment advisory approach is risk tolerance analysis.
Here we find out what type of investor you are.
We will do this by asking you a series of questions.
Basically your risk tolerance tells you what kinds of investments you will be comfortable with.
Risk Tolerance Analysis is very often overlooked.
Many firms just throw their clients into investments without consideration of risk tolerance.
We spend extra time and care on risk tolerance analysis.
A portfolio that is too risky for an individual can have a very detrimental effect on an individual.
Even if the economic losses in the portfolio are only temporary.
There are other costs as well.
For example the mental health opportunity cost.
If the client is constantly worrying about the portfolio, then they will not be focused on things like their job, their spouse, their children, their health, and this can cause huge problems in their life.
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