By: Jeremy Skoglund, Trust Officer
When my wife and I got married, and when we had kids, we put together a gift registry at various places to let everyone know what we would like. It was fine when close friends and family decided to get us something that wasn’t on the registry because they usually knew what we would like. But there seemed to be a few people that didn’t know us all that well that decided to go rogue and pick up something that was neither on the registry nor something we wanted – think loud, obnoxious kids’ toys. We would politely say, “Thank you,” while we silently yelled in our minds, “Stick to the Registry!”
When it comes to our investments, it would be great if we could easily identify items that would fit on our registry and have our advisors stick to that registry. The problem is it can be challenging to identify those investments that are right for us. We end up relying on an advisor to tell us what investments are right for us. Sometimes that advisor knows us enough to know what investments are right. Sometimes, we politely say, “Thank you,” while we silently yell in our minds, “Do you even know me!”
Luckily, there is a tool out there that can more accurately identify our risk tolerance and the risk tolerance of our investments so we can see if the two match. The tool is called Riskalyze©. The tool is built on an academic framework that won the Nobel Prize for economics and is the first in the world to target risk tolerance. We can use Riskalyze© to find your Risk Score and either make sure that your current portfolio fits your Risk Score or build a portfolio to fit you.
Click below to take a quick, free questionnaire to find your Risk Score.
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