Measure Your Risk
The first step of prudent investing is understanding the amount of risk you are willing to accept in your portfolio. While many investors think primarily of market risk, there are other forms of risk to consider (e.g. political risk, inflation risk, longevity risk, etc). Market risk can work for or against your desired long-term growth rate, so finding the appropriate level of risk is important. Too little risk might short-change your long-term growth potential, while too much risk can create more volatility (and anxiety!) than desired, including the potential for unnecessary losses.
Click the button above to determine your risk number – an important step in establishing a portfolio that matches your specific risk profile.