Do you know how much risk is in your investments? It could be more than you think, and may also be a reason why stock market volatility may be keeping you awake at night.
We recently met a retired gent from Spring Lake. Overall, he was a pretty conservative fellow, right down to the way he dressed. He managed his own money, and he believed his investments were conservative. However, every time the stock market would slide, his would be the first phone call we would get.
It seemed his investments, and his tolerance for risk, never seemed to match up.
When we measured his risk tolerance, we showed him (by his own responses to our questions) what he really wanted was a conservative approach. But his retirement account from work was invested very aggressively. No wonder he would get worried when markets began to slide!
Risk Adjustments
When your investments and your tolerance for risk don’t line up, trouble begins.
We spend a lot of time getting to know our clients. And “knowing our clients” is a continual, never-ending practice. In fact, we like to know “what is happening” with our clients all the time, so we stay in touch and will periodically survey them as well. This helps our clients (and us) know if we are taking the appropriate amount of risk with their investments, for their situation.
Your lives change, and the world changes too. We have to be adaptable, flexible in our approach to reaching goals. One of the most important things an advisor can do is get to know their client’s situation. Getting to “know your client” just never happens when you’re speaking with a mysterious voice from a call center, or trying to manage finances with an online app.
We work with our clients to put together investments that will help them live their lives, and take (for their own situation) the right amount of risk.
You can check out your own risk score today, for free, at www.mullooly.net/risk
Let us know what score you get, OK?
PS: If you take the test and get a result you don’t like, call us at 732-223-9000.
Or go to www.mullooly.net/schedule-a-meeting to set a time to talk.