Balancing the trade-off between risk and return is one of the most fundamental decisions an investor makes. But it can be difficult to “know thyself” and truly understand your risk tolerance. Myriad psychological factors may cause you to behave differently than your stated risk profile when confronted with market volatility. And beyond weathering the ups and downs of the market, there are other types of risk that can impact the pursuit and achievement of your financial goals.
In this episode, Mark is joined by Susan Hirshman, CFA®, CFP®, CDFA®—director of wealth management for Schwab Wealth Advisory. Susan shares her perspective on risk from her years working as an advisor to high-net-worth and ultra-high-net-worth investors. Susan and Mark discuss the difference between risk tolerance and risk capacity, how to determine your true risk tolerance, and how a wealth management plan can help you stay the course when your risk tolerance is tested.
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Important Disclosures
The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.
All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.
Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.
Investing involves risk including loss of principal.
Please note that this content was created as of the specific date indicated and reflects the author’s views as of that date. It will be kept solely for historical purposes, and the author’s opinions may change, without notice, in reaction to shifting economic, business, and other conditions.
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