Insights

How to Assess Your Investment Risk Tolerance

August, 2024

How do I determine the right asset allocation for me? In other words, how do I decide how much risk I am willing to take to meet my goals?

We recommend thinking about this question by considering three different factors: an investors’ ability, willingness and need to take risk. Your ability to take risk is largely a function of your time horizon. The longer you plan to stay invested, the more risk you can take. Your willingness is based on how willing you’ll be to stick with your plan if markets perform poorly. Finally, your need to take risk is a function of how much you’ve saved relative to how much you want to spend. Blending these three factors together will help you determine the right mix of investments for you.

Our strategic partner, Buckingham and Chief Investment Officer Kevin Grogan, CFA, CFP® discusses how to determine the risk you’re willing to take to meet your financial goals.

Please reach out to your CWA Advisory Team to discuss your risk tolerance to determine if you might need to update your portfolio risk levels.

 

 

For informational and educational purposes only and should not be construed as specific investment, accounting, legal, or tax advice. Certain information is based on third-party data and may become outdated or otherwise superseded without notice. Third-party information is deemed to be reliable, but its accuracy and completeness cannot be guaranteed. Neither the Securities and Exchange Commission (SEC) nor any other federal or state agency have approved, determined the accuracy, or confirmed the adequacy of this information.