What is Risk?

“Knowing yourself is the beginning of all wisdom.” - Aristotle 

What is risk?

Risk is understanding yourself—your needs, wants, and emotional urges—can be one of the most effective ways to start your investing journey.

What is risk tolerance?

Risk tolerance is how much risk you’re able to handle as an investor to meet your goals.

Why does risk tolerance matter?

Knowing your risk tolerance will allow a financial professional to develop the most accurate portfolio of assets—whether it includes equities, bonds, and/or other investment options—to help you build wealth, save for retirement, or pursue other financial goals. As a reminder, all investments involve some degree of risk, some more than others.

How do I identify my risk tolerance? 

To identify your individual risk tolerance, consider the following factors:

• Your age
• Investment objectives and timeframe
• Emotional ability to handle risk
• What you can afford to lose 
• How you react when the markets go up and down

The key to building a diversified portfolio that meets your financial needs is to understand your risk tolerance. 

Please reach out if you’d like to discuss your personal risk tolerance in more detail. 631-434-5561

^{A diversified portfolio does not assure a profit or protect against loss in a declining market.}