Broker Check

Risk Assessment


Investing is risky. It’s the nature of the beast. Some risks are avoidable; some are not.

Avoidable risks are those that occur when your portfolio leans too heavily on stocks or bonds that have been unstable in the past or when your holdings are not diversified appropriately. Unavoidable risks are those that occur because our world is ever-changing, volatile, and we can’t predict everything.

But beyond these two levels of risk is a third lesser known risk: being too conservative and not achieving your future goals as a result. By overestimating risk and trying to avoid loss at any cost, you could be unintentionally sacrificing your future dreams.

Research shows that four out of five investors have more risk in their portfolio than they realize.* This excess of risk can subject you to greater losses in market downturns. Risk is different for every person based on their unique situation, stage of life, and personality. It is important to understand your personal risk preference so that you can ensure that your portfolio is in line with it and you aren’t caught off guard.


Do you know your risk number?

The first step is to take my five-minute quiz 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.

Check out the online risk assessment tool from Riskalyze to pinpoint your acceptable levels of risk and reward.

*Study performed by Riskalyze completed in September 2014 compiling research from investors across the U.S.