What's Your Risk Appetite?
In the face of market volatility, it's important to take a few moments to review your appetite (and capacity) for risk, and to measure your response to uncertainty. It's also an especially good time to review your retirement plans.
As an advisor, I program risk into all of my clients’ and plans' investment programs. In other words, I anticipate and monitor risk while clients tend to react to it.
That's natural.
That's why all of our clients (businesses and individuals) have Investment Policy Statements together with growth and volatility assumptions; it’s also why we have our clients and plan participants complete Risk Analysis Questionnaires-- because investing is a lot like sailing: you set a course and adjust for wind and tides. Similarly, we adjust portfolios as necessary to keep our clients on course. One of the reasons we're so adamant about providing ongoing education to our clients is to review, reassess and make adjustments based on any changes in their goals and risk sensitivities.
If you have questions about risk or risk-exposure, shoot me a message!