Episode 13: Risk Tolerance

In this episode on the Wilson Wealth Management YouTube channel, we continue our look at the Investor Profile. The focus in this session is on an investor’s risk tolerance and working to become a more rational investor.

Your level of risk tolerance plays a significant role in your investment portfolio’s target asset allocation. So your personal risk appetite must be understood if you wish to create an optimal portfolio. Specifically:

What “visceral” aspects of your personality and lifetime experiences impact risk tolerance?

Investment risk, expected returns, time horizon, and funding your portfolio. How do the interrelationships between these factors play a part in the level of risk you may want to assume?

How do Investor Psychographic Models, like the Bailard, Biehl, & Kaiser Five-Way Model, help you better understand your current risk profile? And perhaps provide ideas on how to shift boxes?

What is meant by a more “rational approach” to risk? Why should this be your goal?

To help assess your current risk tolerance, please review “What is Your Risk Tolerance?”.

For a little more information on Psychographic Models, please refer to “Investor Profiles”.

And for an overview on risk management, please read “Risk Management for Investors”.