Broker Check

4 Ways To Better Define Investment Outcomes

| November 15, 2019
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“The essence of investment management is the management of risks, not the management of returns.”  - Benjamin Graham

  1.  Treating you as individual. The old way of assessing risk and stereotyping investors using words like “Moderate”, “Conservative”, or “Moderately Conservative” simply doesn’t    work.  These subjective words can mean different things to different people, including your advisor and you.

  2. Defining Your Risk Number. Award-winning risk engineering technology is available to mathematically pinpoint your Risk Number™ and can help align your portfolio to match it.  Built on a Nobel Prize-winning framework, subjective terms like “Conservative” or “Aggressive” are replaced with the Risk Number, a quantitative way for your advisor and you to establish the correct amount of risk for your portfolio. 

  3. Making it easy. Take a “plug and play” interactive approach to pinpoint your Risk Number by going through a series of objective exercises based on actual dollar amounts.  Evaluating scenarios using real dollars makes for a more realistic assessment to help determine how much you’re willing to risk (lose) in exchange for an opportunity for a specific gain.  This helps put YOU more in charge of your investment outcome.

  4. Bringing it all together. Bringing your Risk Number into consideration to build an optimized portfolio that fits your risk tolerance and overall long-term financial plan is the ultimate goal.  Why?  Because your investment outcomes can then be stress tested to better define more realistic expectations and financial outcomes.     

 

About Riskalyze

Riskalyze is the company that invented the Risk Number™ and was named as one of the world’s most innovative companies in finance by Fast Company Magazine.  Riskalyze works with RIAs, hybrid advisors, independent broker-dealers, custodians, clearing firms and asset managers to align the world’s investments with investor risk tolerance.

 

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