Transcription:
This is money talks with Chad Olivier, sponsored by Olivier Group.
Hi. I’m Chad Olivier, certified financial planner and CEO of Olivier Group. Today, we’re gonna talk about an important step in the financial planning process, assessing an investor’s risk tolerance.
Your risk tolerance is the amount of market volatility you’re willing to tolerate as an investor. It encompasses your investment objectives and your level of comfort with risk. It is often the case in the investment world that investments with the potential for higher returns come with a higher risk for sudden dips or losses. When you properly assess your risk tolerance, you can create an investment strategy that will assist you in balancing your threshold for volatility with the potential for higher returns.
There are factors to consider that impact your risk tolerance assessment.
First, why are you investing, and what are your investment goals and performance expectations?
Next, what is the timeline for your investment strategy? Sometimes the longer the timeline, the more risk an investor may be willing to tolerate, and how comfortable are you with short term volatility?
Having a well diversified portfolio can help balance the impact of market fluctuations.
Assessing your risk tolerance is an ongoing process that should be revisited periodically during your investing journey. Visit our website at Olivier Group dot com and take our quiz to check into the possible investment strategies for your risk tolerance.
And that’s why money talks, but planning pays.
This has been money talks with Chad Olivier.
