Assessing Your Risk Tolerance & Risk Capacity

Risk tolerance is about emotional & psychological comfort with risk.  Risk tolerance is fluid and can change due to life events, age, and economic conditions.

Risk capacity is about one's financial ability to bear it.  Risk capacity is determined by concrete financial circumstances like income, debt, and time horizon. 

Both factors are crucial for crafting a balanced, effective investment strategy.  Achieving harmony between risk tolerance and capacity is key for financial peace of mind.

At FWSG we utilize a Risk Tolerance questionnaire from Morningstar, that is designed to help assess whether the riskiness of a portfolio matches the risk profile of the investor. It has optimal value when combined with the Morningstar Risk Profiler and the personalized Risk Comfort Range.  

To learn more about this, please contact us and we will send you a link that will enable you to take the risk tolerance assessment.  Once that is accomplished, we can discuss the results and how they relate to your current and future financial goals and objectives.