A cornerstone of creating and managing your investment portfolio is having a complete understanding of your risk tolerance.
By having a clear understanding about how you are likely to react to periods of uncertainty or volatility, we can structure your portfolio to generate the returns necessary to help you achieve your goals at a level of risk that will allow you to sleep at night and not make emotional decisions during market corrections. All investing involves some level of risk, so when looking at your risk tolerance we are considering your goals and your emotional comfort with volatility. All new clients complete a risk questionnaire and this process helps us determine what type of portfolio and asset allocation will help you meet your goals and ensure you can sleep at night.
We are excited to announce that we have started using a new tool that will help us better understand your tolerance to risk. Investor EQ is, at its core is a risk tolerance tool, but it goes deeper than that. This software uses principles of behavioural finance to go deeper than other risk profiling tools.
It helps you find out more about yourself and helps us get to know you and gain clearer insight into your motivations, investing personality and risk tolerances, as well as how you might emotionally react to different investment situations in the future.
The behavioural questions show how your blind spots and biases affect the way you make investment decisions and that helps us to work with you more effectively.
All of these factors allow us to better tailor your portfolio to your unique needs and comfort levels. As financial markets and your personal circumstances change, your risk tolerance changes. InvestorEQ is different: it acknowledges that risk tolerance exists in a dynamic range which gives us a more complete picture of your risk tolerance.
So what does this mean for you? In one of your future meetings, your wealth advisor will include completion of your InvestorEQ survey and discuss its findings. Please reach out to your Advisor if you would like more information on how you can complete your InvestorEQ assessment.
All examples are for illustrative purposes only and are not intended to provide individual financial, investment, tax, legal or accounting advice. This material is for general information and is subject to change without notice. Every effort has been made to compile this material from a reliable source. However, we cannot guarantee that information will be accurate, complete and current at all times. Before acting on any of the above, please make sure to see a financial professional for advice based on your personal circumstances.