Whether you are new to investing or have large diversified portfolio, knowing your risk tolerance is key to maximizing your earnings and meeting your goals.
As changes in your life goals, career, health, cost of living, industry exposure, and income occur, your portfolio risk should be adjusted.
An annual assessment can help determine your risk preferences, risk capacity and portfolio risk.
- Risk Capacity- Ability to take risk is based on your current life situation.
- Risk Preference- How much risk your willing to take.
- Portfolio Risk Score- Should fall somewhere between your risk preference and risk capacity.
Find out what your Risk Tolerance Score is to know if your current investments are right for you.