What is your risk number? Many of us have heard the commercial advertising the sleep number bed. The company claims that some people like a soft bed and some prefer a hard surface for sleeping. They encourage you to determine a sleep number so the setting on your bed will be customized to your preferred comfort level.
When it comes to your investment portfolio you have probably heard advisors use terms like “moderate” or “aggressive” when determining your risk tolerance as an investor. We encourage you to take a more objective, measurable approach to portfolio risk management. We have recently partnered with a risk management company to help us determine your number by using a customized questionnaire. We can then import your current holdings to determine your current risk score.
Using statistical modeling based on historical data, the system projects the maximum gain and/or loss of any portfolio (with 95% degree of confidence) over any six-month period. Illustrating your maximum gain and loss, we believe, better communicates the overall risk of your investment portfolio. Another feature of this program illustrates a portfolio income simulation. We can model the statistical likelihood of achieving your retirement income target. Additionally, because the program is dynamic the numbers are updated daily.
By better matching your risk tolerance with your portfolio, we believe we can better help you achieve your long term financial goals.