Managing Risk

What kind of risk are you taking?

Risk: Take too much or too little and you may never reach your goal. 

Risk can be broadly defined as a situation involving exposure to danger. When you invest your money, you will be exposing your money to many risks. The most common risk we hear about is risk of loss.

Yet that is not the only risk you and your money face. Additional risks include not reaching your financial goals, loss of purchasing power or even missed opportunity. We help you understand the different kinds of risks you and your money face. We help you find a balance between risk and reward. Learn more and check out our online tool called Risk Score

Would you drive with your eyes closed?

Would you drive with your eyes closed?

Of course not! Yet that is what many investors do. 

Risk and investing is similar to speed and driving. Drive too fast, take on too much risk and an accident can be costly. Drive too slow, take on too little risk and you may not reach your destination on time.

Learn which investments have the most risk and which the least. Find the mix of investments that is aligned with your comfort level and still helps you reach your goals. 

Use our Risk Score tool below.

Or call us to find out more at 650-458-0312

A little background:

Over the years, we have searched and reviewed many "Risk Tolerance Questionnaire's". If you ever invested with a professional, you probably completed a Risk Questionnaire. A key problem with these questionnaires are the vague answers. Deciding between “sometimes agree” or “partially disagree” can be hard. Add in industry jargon just leads to more confusion.  

Instead we use an academic framework that won the Nobel Prize for Economics called Prospect Theory. Prospect Theory is a behavioral theory that describes the way people choose between probabilistic alternatives that involve risk. The Risk Score process lets the investor determine their own risk by using actual numbers. Weighing their personal reaction to different potential outcomes.

For more information about our risk management process or the services we offer, send us a quick email or call the office. We would welcome the opportunity to speak with you. | (650) 458-0312