How Much “Risk” Can You Take?
The roller coaster stock market over the past year has many people questioning their risk tolerance. When I do investment planning for my clients, we go through an exhaustive process. To develop a person’s Asset Allocation (AA), we take everyone through an Investment Policy Statement (IPS).
This IPS is about 20 typewritten pages and once completed, it portrays the amount of risk (volatility), or in plain English… how much you can tolerate losing.
The format of the IPS allows us to develop an Asset Allocation that is specific to the client. There isn’t a cookie-cutter-one-size-fits-all method like you see on many websites.
A second part of providing comprehensive financial planning is determining their “Behavioral Finance” attributes. You see, all of your attitudes about money are ingrained in you by your life’s experiences. For instance, many senior citizens were affected by the depression or World War II. The Vietnam War and the wild ‘60s influenced me. The young people today have been affected by the “tech wreck” and recently the subprime mortgage mess.
In developing legacy and holistic planning for my clients, I use a Behavioral Finance Quiz. It is 25 questions, done online, with no right or wrong answer, and can be completed in 5-10 minutes. It will produce your profile based on countless years of research. The report will tell you about yourself… it will amaze you. You will swear someone has been sitting in your home watching you.
Now, if you would like to take this quiz, at no charge to you, it will take a few steps:
Contact us at founders@foundersgroupinc.net and let us know your name, email address and phone numbers. We will email you a link with your user name and password. Once you complete the quiz then you will get a report. If you would like to discuss the results, I would be pleased to assist.