Clint Eastwood famously said “A Man’s Got to Know his Limitations.”
Likewise, an investor’s got to know his risk tolerance because taking too much or too little risk leads to poor outcomes.
Risk Tolerance is a fascinating psychological trait. Like other aspects of personality, it’s determined by genetics and life experience.
Best practice for measuring risk tolerance is by way of a psychometric test. The award-winning online FinaMetrica Risk Tolerance Test was launched in 1998. It’s reliability and validity is backed by over a million users.
Scroll to the bottom of the page and sign in to gain immediate, FREE access to the FinaMetrica test. Remember there are no right or wrong answers. It’s fun to take and it’s a great resource for self-discovery. FinaMetrica will instantly score and show you your results complete with insightful commentary including your position on the risk tolerance “bell curve” relative to other investors. I recommend you and your spouse (or spouse-to-be) take the test and compare scores.
Then call me Parker Evans at (727) 744-3614. Let’s talk about your risk tolerance and how it aligns with your financial goals and investment portfolio. I look forward to hearing from you!
H. Parker Evans, CFA, CFP, CMT
President and Chief Investment Strategist
Successful Portfolios LLC